I am working on an Desktop application built with wx Python. I would like the application to visualize maps(shapefiles) like a GIS software and provide interactions with the map. I was looking through arcpy and arcgisscripting but I am not sure if it help me render the shapefile on the Panel. Please do let me know if it is possible?
ArcGIS has it's own rendering engine.  You would need to create an ArcPy tool or script or add-in for something like ArcGIS Explorer or the paid version ArcMap.  You could also look into making an ArcPy tool, script, or add-in for their ArcGIS Runtime.
wxPython and ARCGIS