UPSC IAS - 2017
The term 'Domestic Content Requirement' is sometimes seen in the news with reference to
Year Asked: 2017
Correct Answer
A. Developing solar power production in our country
Detailed Explanation
The correct answer is A. A Domestic Content Requirement is a condition that obliges a project or producer to use a minimum share of locally made inputs. In solar power, India's Jawaharlal Nehru National Solar Mission (Phase II) required projects under certain schemes to use domestically manufactured solar cells and modules. The US challenged this at the WTO in 2016 (DS456), arguing that it violated national treatment under GATT Article III and the TRIMs Agreement, which is why the term appeared in the news in 2017.
Why the others fail:
- B concerns licensing of foreign TV channels, handled by the Ministry of Information and Broadcasting under FDI and uplinking/downlinking guidelines. No local-sourcing condition applies.
- C concerns export promotion and quality standards through bodies like FSSAI and APEDA. Domestic content is not the concept.
- D concerns permission for foreign universities to open campuses, governed by UGC and regulatory approvals. Local sourcing has nothing to do with it.
Core concept: trade-related investment measures and the tension between industrial policy and WTO rules. For Mains GS-III, this links to Make in India, manufacturing, and the 500 GW non-fossil capacity target.
Trap: Many aspirants pick C because 'export' sounds like it involves content standards. Remember that DCR is a sourcing condition inside the country, and it appears mainly in renewable energy and EV policy.
This question appeared in UPSC Prelims 2017 GS Paper-1.
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