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The phrase "domestic development" is correct and usable in written English.
You can use it to refer to a country's progress and improvement in the areas of industry, economy, infrastructure, etc. For example, "The nation has made great progress in domestic development in the past decade."
Exact(46)
Domestic development was his priority.
Pat Brown, the domestic development coach, ran to help.
Domestic development education programmes were also especially hard hit in Canada.
Indian companies need to diversify their markets, and the Indian government needs to sustain broad-based domestic development.
When aid is too large relative to domestic development resources, accountability can be subverted from citizens to donors.
Beijing joined the W.T.O. in 2001 "as an insurance against protectionism, to enhance domestic development," Mr. Lamy said.
Similar(14)
Among the few domestic developments known during his reign, Norway developed a more-centralised rule and moved closer to the European model of church organisation.
During the first two decades of his reign George II followed foreign and domestic developments closely.
Regional geopolitics and domestic developments can bring all your cards tumbling down.
Contemporary issues in U.S. relations with Northeast Asia; the impact of domestic developments in foreign policy decision-making.
Ladas & Parry Newsletters – Online newsletters from the law firm of Ladas & Parry describing international and domestic developments in intellectual property law.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com