What exactly is Domestic Value Addition (DVA)?

Domestic Value Addition refers to the process of increasing the proportion of goods, services, and components sourced or produced within a country for a final product or service, rather than relying on imports.

Why is DVA crucial for national economies?

DVA is crucial as it stimulates local industries, creates jobs, reduces import dependency, strengthens supply chains, and fosters economic self-reliance and sustainable growth.

How do governments typically promote DVA?

Governments promote DVA through policies like local content requirements, preferential procurement, incentives for domestic manufacturing, skill development initiatives, and investment in indigenous research and development.

In which industries is DVA particularly significant?

DVA is particularly significant in strategic sectors such as manufacturing, defense, electronics, automotive, and renewable energy, where reducing foreign reliance is a key national objective.