Indian Economy News

Govt launches revamped Zero Effect Zero Defect Scheme for MSMEs

  • IBEF
  • April 29, 2022

The Ministry of Micro, Small, and Medium Enterprises (MSME) inaugurated a new Zero Defect Zero Effect (ZED) Certification Scheme, with the goal of making Indian businesses more globally competitive and facilitating capital access.

The Scheme is designed to help MSMEs implement Zero Defect Zero Effect practices while also motivating and incentivizing them to pursue ZED certification. Minister of Micro, Small and Medium Enterprises, Mr. Narayan Rane said that the Zero Defect Zero Effect (ZED) Certification Scheme will improve the productivity and performance of MSMEs, it has the potential to shift manufacturers' mindsets and make them more environmentally conscious. The redesigned scheme's first phase would target manufacturing MSMEs, while the second will target MSMEs in the services sector.

The certification's number of parameters, which are divided into bronze, silver, and gold, has also been reduced from 50. For participating in business exhibitions and fairs overseas, ZED-certified MSME players will be provided subsidies on stall fees, airfares, and freight charges. Certified MSMEs would also be eligible for reduced bank processing fees and interest rates, as well as lending priority. Certified MSMEs are also more likely to have a higher credit rating.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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