UPSC Prelims 2017 Q27: Indian Economy – Infrastructure & Industry
The term ‘Domestic Content Requirement’ is sometimes seen in the news with reference to
- (a) Developing solar power production in our country
- (b) Granting licences to foreign T.V. channels in our country
- (c) Exporting our food products to other countries
- (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).
| Point | Detail |
|---|---|
| Aim | Build a domestic solar manufacturing industry |
| Dispute | The US challenged it at the WTO in 2013 |
| WTO ruling | 2016: DCR violated the national treatment rule (GATT Article III) and the TRIMs Agreement |
| Today | DCR continues in government schemes like PM-KUSUM and rooftop solar, which the WTO rules allow for government use |
Checking the options:
| Other option | Why wrong |
|---|---|
| (b) TV channel licences | Governed by uplinking and downlinking guidelines |
| (c) Food exports | Governed by export and food safety rules |
| (d) Foreign university campuses | Governed by UGC regulations |
Answer: (a) Developing solar power production in our country.
Why each option is right or wrong
- (a) CORRECT. DCR required Indian-made solar cells and modules under the National Solar Mission.
- (b) Incorrect. Licences for foreign TV channels have nothing to do with DCR.
- (c) Incorrect. DCR concerns imports and local manufacture, not food exports.
- (d) Incorrect. Foreign university campuses are regulated by the UGC, not DCR rules.
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
- Linking 'domestic content' to media content such as TV channels.
- Forgetting the India-US WTO dispute over solar DCR.
- Thinking DCR was scrapped entirely; it continues for government-funded projects.
Exam tip
'Content requirement' in trade means local manufacturing share, not media content.
Sources
- WTO — India: Certain Measures Relating to Solar Cells and Solar Modules (DS456)
- Ministry of New and Renewable Energy — Jawaharlal Nehru National Solar Mission