Step 1: Read the passage carefully
The paragraph highlights two main ideas:
1. The World Bank is increasingly focusing on India’s water resources because they are rapidly depleting.
2. Funding for water-related projects has significantly increased—from $700 million (1999–04) to $3.2 billion (2005–08).
3. Within this sector, a greater share of money is being directed toward rural water, large hydropower projects, and water resource management, especially in poorer states.
Step 2: Find the central theme
The main emphasis is not just on rising World Bank funding but specifically on how this funding is being channelled—toward poor states, rural water supply, hydropower, and water resource management. The mention of "poor states" in the final sentence is the key focus.
Step 3: Check the given option
Option (D): “Poorer states of India require water resource management projects such as rural water, large hydropower projects.”
This option captures the essence because it links the Bank’s increased assistance directly to the needs of poorer states and identifies the kinds of projects being funded.
Step 4: Final justification
Thus, the best summary is that the World Bank’s water-related funding is concentrated on projects like rural water, hydropower, and water management in poorer states, which reflects the passage’s main point.
Final Answer: The correct option is (D) Poorer states of India require water resource management projects such as rural water, large hydropower projects.