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UPSC Prelims 2017 Q27: Indian Economy – Infrastructure & Industry

UPSC Prelims 2017, General Studies Paper I · Indian Economy

The term ‘Domestic Content Requirement’ is sometimes seen in the news with reference to
  1. (a) Developing solar power production in our country
  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

Answer: (a) Developing solar power production in our country

Explanation

Domestic Content Requirement (DCR)

DCR rules required solar cells and modules in some government schemes to be made in India.

They were part of the Jawaharlal Nehru National Solar Mission (2010).

PointDetail
AimBuild a domestic solar manufacturing industry
DisputeThe US challenged it at the WTO in 2013
WTO ruling2016: DCR violated the national treatment rule (GATT Article III) and the TRIMs Agreement
TodayDCR continues in government schemes like PM-KUSUM and rooftop solar, which the WTO rules allow for government use

Checking the options:

Other optionWhy wrong
(b) TV channel licencesGoverned by uplinking and downlinking guidelines
(c) Food exportsGoverned by export and food safety rules
(d) Foreign university campusesGoverned by UGC regulations

Answer: (a) Developing solar power production in our country.

Why each option is right or wrong

Key point

DCR = made-in-India solar cells and modules under the National Solar Mission; the US challenged it at the WTO (India lost in 2016).

Remember

DCR = local solar manufacturing; WTO dispute with the US.

Common mistakes

Exam tip

'Content requirement' in trade means local manufacturing share, not media content.

Sources

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