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India is a member of which of the following constituents of the World Bank Group?
  1. Multilateral Investment Guarantee Agency (MIGA)
  2. International Centre for Settlement of Investment Disputes (ICSID)
  3. International Development Association (IDA)
  4. International Bank for Reconstruction and Development (IBRD)
Select the correct answer code:
  • a)
    1, 2, 3 
  • b)
    1, 3, 4 
  • c)
    2, 3, 4 
  • d)
    1, 2, 3, 4
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
India is a member of which of the following constituents of the World ...
Overview of India's Membership in World Bank Group
India is a member of the following components of the World Bank Group:
  • International Development Association (IDA)
  • International Bank for Reconstruction and Development (IBRD)
  • International Centre for Settlement of Investment Disputes (ICSID)

However, India is not a member of the Multilateral Investment Guarantee Agency (MIGA).
Explanation of Memberships
  • International Development Association (IDA):
    - Focuses on providing interest-free loans and grants to the world's poorest countries.
    - India, being a developing nation, benefits from IDA's financial assistance for various development projects.
  • International Bank for Reconstruction and Development (IBRD):
    - Provides loans and financial services to middle-income countries and creditworthy low-income countries.
    - India engages with IBRD for funding large infrastructure projects and developmental initiatives.
  • International Centre for Settlement of Investment Disputes (ICSID):
    - Facilitates the resolution of investment disputes between international investors and host countries.
    - India’s participation helps in addressing investment-related disputes effectively, promoting foreign investment.
  • Multilateral Investment Guarantee Agency (MIGA):
    - Offers political risk insurance and credit enhancement to encourage foreign investment in developing countries.
    - India, while benefiting from foreign investments, is not a member of MIGA, as its focus is primarily on providing guarantees rather than loans.

Conclusion
Thus, the correct answer is option 'B' (1, 3, 4), as India is a member of IDA, IBRD, and ICSID but not MIGA.
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