Domestic Content Requirement concept
Question
The term 'Domestic Content Requirement' is sometimes seen in the news with reference to
Options
Developing solar power production in our country
Granting licences to foreign T.V. channels in our country
Exporting our food products to other countries
Permitting foreign educational institutions to set up their campuses in our country
Explanation
Domestic Content Requirement (DCR) mandates that a certain percentage of components, manufacturing, or value addition must happen domestically. This concept has been frequently discussed in India's solar power sector, where the government has imposed DCR to ensure that solar panel manufacturing occurs within India rather than relying entirely on imports. This protects domestic industry and creates local employment. Option (b) relates to media licensing, option (c) to agricultural exports, and option (d) to educational partnerships—none typically involve DCR discussions. > KEY INSIGHT: Domestic Content Requirement is a trade policy tool most prominently applied to India's solar energy sector to promote domestic manufacturing capability. Answer: (a).
Question details
Year
2017
Paper
GS Paper 1
Question
Q27
Subject
Economy
Sub-topic
Trade and investment policies
Type
Factual single
Difficulty
Medium
Nature
Current-affairs-linked
Source hint
Current Affairs 2016-2017, renewable energy policy
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