The Naxalite insurgency is creating hurdles in India’s economic growth story. The international financial services company, Citigroup Inc, has more than 200 million customers in almost 100 countries.
It said on the insurgency problem in various state in India that the Naxalite insurgency could not only hamper India’s economic growth but also restrict FDI in-flow. Indian politics and its current trends has become a source of worry nothing else.
According to a report issued by the Citigroup, Politics remains a concern, given the nature of India’s coalition government. In addition, the current Maoist insurgency, if not adequately restrained could result in deteriorating governance and undermine investment activity.
The report has been issued under the title `India in 2007 – Managing the New Growth Paradigm’. It said that The group as well as the country is facing four main challenges such as higher infrastructure spends, overcoming the human resource paradigm, a need for inclusive growth and politics including the Maoist challenge.
The challenge no. four, the Maoist movement has a detail of the problem right from beginning as with the history of the Maoist movement. The report clearly said about the possible economic fallout due to Maoist insurgency.
According to the report, the Maoist movement has been spread to 165 districts in 14 states covering close to 40 per cent of the country’s geographical area and affecting 35 per cent of the population.
The report has given detail of the development scope in states such as Orissa and Chattisgarh but the naxalite disturbances remain a major threat in these states.
The report said further that the Naxalite movement against industrialization has become a looming risk. The Maoists have been also issued a direct threat to various multinational corporations to stop developmental work in the state. They see the hi-tech industries as a symptom of an oppressive capitalist system, nothing else.
In the last of the report it is clearly stated that the movement could impose a threat to governance and could hinder investment flows if not restricted in time.