Speaking at a CII organised seminar on "Security Dimensions of Development Disparities" here, Pillai said the Maoists often serve extortion notices to many industries located in central and eastern India where the extremists have a strong presence.
He said that due to insecured environment and thin presence of security forces, the industries are forced to pay extortion money for their safety and smooth running of the businesses.
The Home Secretary said development disparities in mineral-rich areas, which are low-income, such as the North-East and Jharkhand, are leaving them vulnerable to social agitation.
Unless the issue of social inequality is addressed and suitable opportunities provided for all, the issue will persist, he said.
The Home Secretary said not all Indians are benefiting equally from India''s prosperity and this inequality is leading to social unrest.
"The government and industry must work together to tackle the challenge urgently as the information revolution has led to greater awareness and the masses are unwilling to wait," he said.
Pillai said currently, almost 81 per cent of crime in India is committed by first-timers and the maximum number of criminals are between the ages of 16-28.
"This points to the fact that India''s demographic advantage can turn into a disadvantage leading to security concerns if left unattended," he said.