New Delhi, May 2: India has reason to worry over threats to security from its neighbourhood despite a decline in the level of infiltration across the Line of Control in Jammu and Kashmir, the defence ministry has assessed.

The defence ministry?s annual report for 2004-2005 gives an overview of the security scenario in which India is framing its policies.

It has expressed concern over the Maoists in Nepal and their links with Naxalites. The report also says Bangladesh has been ?insensitive and unresponsive? to Delhi?s concerns over Indian insurgents from the Northeast, large-scale illegal immigration and the criminalisation of the border.

On Nepal, the ministry says Maoist insurgency can be addressed effectively only through a national consensus between the constitutional forces. India believes there can be no purely military solution to the insurgency.

The report expresses concern over the links between Maoist insurgents and Left extremist outfits in parts of India and the possible expansion of their influence.

The decline in the level of infiltration in Jammu and Kashmir is more due to the operations by the army than because of effective action from Pakistan, the report says.

The principal threat to peace and stability in the region remains the combination of fundamentalism and terrorism nurtured in madarsas and training camps, and the danger of a proliferation of nuclear weapons, the defence ministry says in a review of the security scenario, which is part of the annual report.

Confidence-building measures with Pakistan and talks with Islamabad have ensured that ?the year ended on a hopeful note on India-Pakistan relations (but) it could not be said that there was an end to cross-border terrorism in J&K?, the report says.

?There was no evidence of any significant Pakistani effort to dismantle the infrastructure of terrorism such as communications, launching pads and training camps on its eastern borders with India, comparable to its western borders with Afghanistan,? the review says, drawing a comparison between Islamabad?s response to Delhi?s demand for action against militants and US-Pakistani joint operations against the Taliban near the Pakistan-Afghanistan border.