The Domestic Tariff Zone (DTZ) at Sri City provides an opportunity for manufacturers who predominantly supply to the Indian market, to setup their operations in a world-class business city environment. The DTZ is spread over 2,500 acres, and its proximity to the SEZ allows for backward integration of processes and supply chain linkages. This zone also acts as a location for ancillary units for SEZ operations.

The DTZ within Sri City offers several financial incentives as per the Industrial Policy of Andhra Pradesh 2023-2027