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Q27·GS Paper 1 · Prelims 2017

Domestic Content Requirement concept

EconomyTrade and investment policiesFactual singleMediumCurrent-affairs-linked

Question

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

Options

a

Developing solar power production in our country

Answer
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

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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