GS-2 (Mains), Mains-2018 (English)

ZED Scheme – To Promote Quality Manufacturing



On India’s 68th Independence Day, PM Modi urged the industry, especially the MSMEs of India, to manufacture goods in the country with “zero defects” and to ensure that the goods have “zero effect” on the environment.


What is it all about?

-> Zero Defect-Zero Effect (ZED) Scheme aims at achieving two things –

  • Firstly, high quality output with minimum defect, and
  • Secondly, manufacturing should not have adverse effect on environment. Quality council of India is the implementing agency of ZED.

-> To enable the advancement of Indian industry to a position of eminence in the global marketplace and leverage India’s emergence as the world’s supplier through the ‘Made in India’ mark.

-> ZED Scheme aims to rate and handhold all MSMEs to deliver top quality products using clean technology.

-> The aim is to help MSMEs evolve and grow by providing them adequate training and funding to move up the value chain and produce quality products. The ZED model will sensitise MSMEs to emphasise delivery of high quality products with zero defects.

-> There will be sector-specific assessment parameters for each industry such as food processing, textiles, leather, auto parts, etc.

-> MSME sector drives almost 38% of nation’s GDP and around employs 110 million employees.


Importance of ZED Scheme:

-> This phrase expresses that Indian growth will cause least damage to the natural environment (zero effect) and the products and services produced in India will conform to the highest quality standards (zero defects).

-> This is intended to be complementary to another policy discourse ‘make in India’.

-> No matter whatever be the target area, the quality of products and services will play an important role.


Significance for India’s MSME sector:

-> MSME sector is crucial for the economic progress of India and this scheme will help to match global quality control standards.

-> It was given for producing high quality manufacturing products with a minimal negative impact on environment.

-> The scheme will be cornerstone of the Central Government’s flagship Make in India programme, which is aimed at turning India into a global manufacturing hub, generating jobs, boosting growth and increase incomes.

-> ZED Scheme is meant to raise quality levels in  unregulated MSME sector which is engine of growth for Indian economy.

-> By delivering high quality product, it shows the absorbing capacity of domestic industry for new technology and using advanced skills of production at par with global standards.

-> MSMEs being the ‘Job creators’ would act as deterrent to ‘Jobless growth’ by being export earner through production efficiency.

-> It would also be helping in women empowerment as many women have came forward in MSME venture through the support provided by initiatives like Stand up India and Start up India.



ZED Scheme along with enhancing the effectiveness and efficiency of MSME’s, provides employment opportunities thereby contributing to growth through exports, manufacturing and as demographic dividend.


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