Zero Defect Zero effect Scheme

Hon’ble Prime Minister has launched “Financial Support to MSMEs in ZED Certification Scheme” of Ministry of MSME, Government of India, at Ludhiana on 18th October, 2016 for inculcating Zero Defect Zero Effect (ZED) Manufacturing Practices among MSMEs. Quality Council of India (QCI) has been appointed as the National Monitoring & Implementation Unit (NMIU) for this scheme across the country.

ZED is a unique & holistic certification model for MSMEs, that will create awareness, assess, handhold and rate them, based on 50 well defined parameters of production, design, quality, safety, environment etc., with special focus on the Defence sector. Each parameter has 5 levels of maturity where level 5 is benchmarked with world-class standards. The final score for rating is a weighted average of the performance of the MSME’s manufacturing unit on each parameter leading to ZED ratings of Bronze, Silver, Gold, Diamond and Platinum.

Highlights of the scheme:

Develop an Ecosystem for Zero Defect Manufacturing in MSMEs.
Promote adaptation of Quality tools/systems and Energy Efficient manufacturing.
Enable MSMEs for manufacturing of quality products.
Encourage MSMEs to constantly upgrade their quality standards in products and processes.
Drive manufacturing with adoption of Zero Defect production processes and without impacting the environment.

Benefits of adoption of ZED manufacturing practices:
Easing access to Loans: For business expansion MSMEs do require financials, and to support the cause RBI has issued an advisory to Indian Banking Association (IBA) to incorporate information on ZED in the MSME loan application form which has been followed. (
Credible & reliable vendor database: ZED will ensure that the companies investing in India have a ready-made & reliable vendor base to support their activities the MSMEs rated under ZED Certification Scheme.
Reducing negative effect on our environment: Enhanced environment consciousness making our MSMEs “Responsible Manufacturers”.
Streamlined operations and lower costs: Superior quality of products, reduced rejection and higher revenues.
Awards & Rewards: High performing ZED units will be recognized nationally by the Ministry of MSME and QCI through an award & reward system which will help them to showcase themselves both nationally and globally.
Aligning with best practices: MSMEs will get an opportunity to do benchmark study and learn the best practices across the globe under the ambit of ZED Certification Scheme.
Global Competitiveness: Enhanced competitiveness of the vendors in the global marketplace so that goods manufactured have no defects and thus leveraging the benefits of quality & cost optimization.
Visibility & brand recognition: A “ZED Mark” to enable an MSME to be seen as a company with a leverage over non-rated MSME units.
Other benefits expected to be announced by the Government in the near future.

Financial Support by the Ministry of MSME, Government of India, for ZED Certification & handholding:

Micro Enterprises: 80%
Small Enterprises: 60%
Medium Enterprises: 50%

In addition to the above there will be additional Subsidy of 5% for MSMEs owned by SC/ST/Women & MSMEs located in NER and J&K.

Necessary details of the scheme have been provided on the website(s): &

You are urged to REGISTER FREE on for ZED (Zero Defect Zero Effect) Certification by the Government of India.

For any query please send an email to or you may also contact to:

Mr. Rohit Varshney, Project Associate (Mobile No.: +919773500375)
Mr. V. Balasubramaniam, Consultant (Mobile No.: +919773500376)
Mr. Ravikant, Assistant (Mobile No.: +918700256858)

O/o Development Commissioner,
Ministry of MSME, Govt. of India
New Delhi

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