All About Zero Defect Zero Effect (ZED) Scheme


Zero Defect Zero Effect (ZED) scheme is a new initiative that has been launched by Indian PM Narendra Modi, it was first mentioned by him during 2014’s independence day speech in regards to future India. This scheme is specially designed for MSME (Micro, Small and Medium Enterprises) sector for production of products that are of quality, without defect and are also environmentally friendly or eco-friendly thereby increasing their demand globally.

Aim of this scheme

Like its name this scheme is to produce products that have ‘Zero Defects’ and have ‘Zero Effects’ on the environment. MSME sector plays a crucial role in economic development of a country as 38 % of the country’s GDP is contributed by it and the ZED model will help in the development of this sector immensely. This scheme aims to promote Indian industry as global marketplace and increase its stature to become one of the leading world’s supplier with product made through ‘Made in India’ mark. In simple words the main aim of this scheme is to turn India into a manufacturing hub that will in turn increase incomes, generates jobs and does much more for the country economic condition. The MSME sector was unregulated till now but with this scheme there are high hopes for the sector to gain high development.

Scope of ZED

The ZED model will be applicable on all services and manufacturing industries and this model will focus mainly on small businesses and MSME. This model is also meant to look into the quality and ecological needs of overseas as well as domestic customers, investors, partners, regulators, employees and society. The scheme is very accessible as online application for assessment as well as ZED certification for product of interested companies is available on the schemes official website. And if you Google for the ZED guidelines you will be able to get a pdf file that gives detailed guidelines of the scheme.

Benefits of the scheme

A few benefits of this scheme are

  • As this scheme aims to produce eco-friendly products that do not harm the environment we can look forward to an India that is free of pollution. The issue of pollution has become crucial with major cities like Kolkata, Delhi, Bangalore etc. have pollution levels much higher that the danger level.
  • The MSME sector currently is not recognised by the world and the products manufactured by it also don’t sell worldwide. With the implementation of ZED the manufactured products can flourish and establish a name for Indian manufactured goods thereby aiding in India’s economic growth. This will also increase the investment of international companies in the Indian market.
  • This scheme aims in increasing product manufacturing that will in turn lead to increase of employment. As MSME becomes more active than the demand of skilled labourers or workers will also increase thereby increasing employment therefore having a very positive effect all over.
  • As ZED comes into effect the operation will become streamlined thereby cutting the costs and increasing the profits for the companies which in turn will also increase their GDP.

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