Animax Asia suddenly stopped airing new episodes of Naruto Shippuden in India as of January 30th 2014. As I am a Naruto fan, I was upset to see it cancelled. What was the reason it stopped airing?
This answer is based on my opinion and backed up with a few facts. So I can't say I'm sure that this is the reason.
Firstly, it's Animax India and not Animax Asia. It's different from the Animax in different Asian countries but is probably similar to the Animax in Singapore and Pakistan. This is what I understand from the articles on Animax Asia and Animax India on Wikipedia. I believe it is the shows that air on the channel that make all this difference.
Secondly, I believe that this must be a common practice on Animax India. I think so because InuYasha met the same fate. The sequel of the series, InuYasha the Final Act was completely aired a few times but I have never seen them air the series InuYasha completely (that is, from when I have been viewing the channel, probably November of 2009).
Thirdly, I guess you would know why was Animax delisted by DTH connections (excluding DEN, Siti Digital and the likes) in India. It was because Animax couldn't pay carriage fees. Why? The most probable reason is the low viewership. You say Naruto is 'world famous'. Yes, agreed. But how many people do you personally know who watch/like anime, let alone Naruto. Not more that 10, or at most 15, I guess? That's the point. In comparison to the size of the country, the number of viewers is insufficient, if not negligible. So, airing any anime here in India is not practical, or I would say, profitable.
The first point tells you that Animax India is a different entity, the second one tells you that Naruto is not the only case and the third one gives you the (most probable) reason why Animax India discontinued airing new episodes of Naruto Shippuden. To summarize, Animax will air new episodes of Naruto Shippuden if there are enough viewers, which is not the case. Sad, but true. Then again, it's my opinion backed up with some facts. So, I can't be that sure.
P.S.: You are lucky to be able to even watch those limited episodes on Animax. I don't even get Animax here on Dish TV.