Question

UPSC Prelims 2017 Question:

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

1. Developing solar power production in our country
2. Granting licenses to foreign T.V. channels in our country
3. Exporting our food products to other countries
4. Permitting foreign educational institutions to set up their campuses in our country

Answer (Detailed Solution Below)

Option 1: Developing solar power production in our country

Detailed Solution

Explanation:

Domestic content requirement (DCR) mandates the use of both solar cells and modules manufactured domestically as per specifications and testing requirements fixed by the Ministry of New and Renewable Energy (MNRE).
The DCR was incorporated into the Jawaharlal Nehru National Solar Mission (JNNSM) or National Solar Mission (NSM) adopted in 2010 with the objective of developing domestic solar manufacturing and making India a solar manufacturing hub. The NSM had an initial target of 20 GW of solar power by 2022 which was, in 2015, revised to 100 GW.
- Jawaharlal Nehru National Solar Mission (JNNSM) required that 20 gigawatt (GW) of solar power should be generated from domestically produced modules or solar cells.

Therefore, option (1) is the correct answer.

Knowledge Box

The World Trade Organization (WTO) found that the mandatory domestic content requirement under JNNSM violated the National Treatment provision of the WTO agreement. The Indian government has significantly reduced the domestic content requirement after the initiation of proceedings at the WTO.
At the beginning of the mission, the domestic content requirement in the auctioned contracts was as much as 50% of the total output generating capacity. This value dropped significantly through the auctions and is currently down to 5%.

Subject: Environment | Renewable and Energy Resources

Latest UPSC Exam 2026 Updates

Last updated on Sep, 2026

→ UPSC 2027 Notification will be released on 13 January 2027 at upsconline.nic.in.

Tags: current affairs UPSC Prelims 2017 UPSC Prelims 2017 Question

Prafulla Vats

Prafulla Vats is an experienced SEO and content strategist with over 4 years of expertise in driving organic growth across education and service niches. He specializes in crafting data-driven content strategies that help students and professionals access accurate, well-researched information. Through his work, he focuses on improving visibility, engagement, and trust through high-quality, SEO-optimized content.