Question Details

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

Options

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

Show Answer

Correct Answer :

Option A

Developing solar power production in our country

Solution :

The correct option is Developing solar power production in our country.


Explanation and Context:

The term 'Domestic Content Requirement' (DCR) came into prominence in national and international news in the context of India's National Solar Mission (Jawaharlal Nehru National Solar Mission).


Under the DCR mandate, solar power developers in India were required to source a specific percentage of their solar cells and modules from domestic manufacturers. The objective was to promote local manufacturing capabilities, boost domestic industry, and reduce reliance on imported solar equipment.


Key Points:

1. Purpose: To support indigenous manufacturing of solar photovoltaic cells and modules in India.

2. WTO Dispute: The United States challenged India's Domestic Content Requirement at the World Trade Organization (WTO), arguing that it discriminated against foreign suppliers and violated WTO rules (specifically national treatment principles under GATT and TRIMs). The WTO panel ruled against India's DCR clause.


Therefore, the term is specifically associated with developing solar power production in India.

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