How does a lack of infrastructure most likely affect poverty in rural India?

• A. It increases poverty by limiting access to markets, education, and healthcare.
• B. It decreases poverty by encouraging self-sufficiency among rural populations.
• C. It leads to higher employment rates due to increased demand for manual labor.
• D. It has no significant impact on poverty levels in rural areas.

Answer: (A)

Verified step by step guidance

1. Understand the role of infrastructure in economic development, especially in rural areas. Infrastructure includes transportation, communication, education, and healthcare facilities, which are essential for connecting people to markets and services.
2. Analyze how limited infrastructure restricts access to markets, making it difficult for rural producers to sell goods or buy inputs, which can reduce income opportunities and economic growth.
3. Consider the impact on education and healthcare: poor infrastructure limits access to schools and medical services, which affects human capital development and productivity, perpetuating poverty.
4. Recognize that without adequate infrastructure, rural populations may struggle to improve their living standards, as they face barriers to employment, information, and essential services.
5. Conclude that a lack of infrastructure most likely increases poverty in rural India by limiting access to markets, education, and healthcare, rather than decreasing poverty or having no impact.