What is the impact on the “Social overhead capital requirements” of an

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What is the impact on the “Social overhead capital requirements” of an economy, if the population increases ?

Social overhead capital requirements fall.
Social overhead capital requirements remain unchanged.
Social overhead capital requirements increase.
Social overhead capital requirements fall drastically.
This question was previously asked in
UPSC Combined Section Officer – 2024
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The correct answer is Social overhead capital requirements increase (C).
Social overhead capital refers to the basic infrastructure and services necessary for economic development and social well-being, such as roads, railways, ports, communication systems, power grids, water supply, sanitation, schools, and hospitals. An increase in population directly leads to a greater demand for these facilities and services, thereby increasing the requirement for social overhead capital to maintain or improve living standards and support economic activity.
A growing population needs more housing, transportation, energy, education, healthcare, and civic amenities. Without a corresponding increase in social overhead capital, existing infrastructure becomes strained, leading to congestion, reduced quality of services, and potential bottlenecks for economic growth. Therefore, population growth necessitates significant investment in expanding and upgrading social infrastructure.

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