UPSC Prelims 2017 GS Paper I · Q27 of 100 Economy medium

The term 'Domestic Content Requirement' is sometimes seen in the news with reference to

  1. (a) Developing solar power production in our country ✓ UPSC's answer
  2. (b) Granting licences to foreign T.V. channels in our country
  3. (c) Exporting our food products to other countries
  4. (d) Permitting foreign educational institutions to set up their campuses in our country

Why the answer is (a)

• Under the National Solar Mission, India required developers in certain project categories to use domestically made solar cells and modules — the Domestic Content Requirement (DCR) — option (a).

• The USA challenged it at the WTO, which ruled in 2016 that DCR violated national-treatment rules under GATT and TRIMs; India lost the appeal and modified the scheme.

• The term is not used for TV licences (b), food exports (c) or foreign universities (d).

• Hence option (a).

Why the other options are wrong

(b) Granting licences to foreign T.V. channels in our country
DCR is not about TV channel licensing.
(c) Exporting our food products to other countries
DCR is not about food exports.
(d) Permitting foreign educational institutions to set up their campuses in our country
DCR is not about foreign campuses.

Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2017, held on 18 June 2017. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.

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