London: India along with Russia, Indonesia, Nigeria and Philippines has been tagged as "extreme risk" growth economies due to security threats, by global risks analysis firm Maplecroft.

The UK-based firm's Global Risks Atlas 2011 has cited security as a main concern for investors in high risk growth economies of the five countries including India.

"India is rated extreme risk for security as it faces simultaneous threats of terrorist attacks from militant Islamic extremists and Naxalite Maoist insurgents," said Maplecroft report covering 175 countries.

The report highlighted seven key global risk areas including security, governance, climate change and societal resilience, including human rights.

"... with the Philippines (8), Russia (10) and India (11) rated extreme risk and Nigeria (12) and Indonesia (28) considered high risk in the 'security risk category, politically motivated violence and terrorism must now be a primary concern for investors in these territories," the firm noted.

According to the report, despite good growth, India has a poor human rights record. Also large sections of the population lack access to basic social infrastructure such as education, healthcare and sanitation.

"This reduces the country's flexibility to global risks by creating a less productive workforce, a population susceptible to the spread of disease, and potential instability due to risk of social unrest," it said.

As per the report, four countries -- Somalia, Sudan, Afghanistan and DR Congo -- are in the extreme risk category. All these nations are characterised by weak governance, internal conflicts and regional instability, it added.

"Maplecroft findings indicate that low external debt, energy security, good governance and regime stability are all factors that improve countries' resilience to the conflation impacts of global risks," Maplecroft's CEO Alyson Warhurst said.

 

(Agencies)