Q12 · UPSC current affairs · 23 September 2026 · PIB · Telecom Manufacturing Zone TMZ Gwalior

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In the context of industrial and manufacturing policies, what does 'Domestic Value Addition (DVA)' refer to?

A The subsidies provided by foreign entities to domestic exporters
B The total import bill of raw materials required for an industry
C The proportion of a final product's production cost generated locally within the home country
D The international tariff imposed on goods manufactured in special economic zones

Correct answer: (c) The proportion of a final product's production cost generated locally within the home country

Explanation

Domestic Value Addition (DVA) measures the proportion of a final product's production cost that is generated locally within the home country, reflecting the depth of domestic manufacturing. Options A, C, and D misrepresent the concept by confusing it with imports, foreign subsidies, or external tariffs.

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