What is ZED (Zero Defect, Zero Effect) Scheme for MSME Sector – Complete Detail

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ZED  having complete name as “Zero Defect, Zero Effect scheme ” is a new initiative launched by the Narendra Modi led NDA government. The scheme is basically for MSME  – “Micro, Small and Medium Enterprises ” sector to increase the quality of products matching global standards followed by. “Let’s think about making our product which has ‘zero defect’….. and ‘zero effect’ so that the manufacturing does not have an adverse effect on our environment” Hon’ble Prime Minister Shri Narendra Modi said.

ZED (Zero Defect, Zero Effect) Scheme Objectives

Under the scheme, MSME sector is ordered to make products with “Zero Defect” and “Zero Effect” on the environment, thus so improving the brand image of the country.

The prime minister also asked the MSME sector to make products at par with global standards.

The main objective of ZED (Zero Effect, Zero Defect) scheme is to reduce the bad effect of products on environment. While MSME sector plays a big role in the GDP of India, the scheme will help contribute to environment as well.

Vision 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.

Benefits of ZED certification


  • Credible recognition of the industry for international customers seeking investment in India
  • Streamlined operations and lower costs
  • Superior quality, reduced rejection and higher revenues
  • Increased environmental & social benefits
  • Additional employment generation
  • Other benefits as announced by the Government from time to time.

ZED Scope

The Model shall be applicable for all sectors of manufacturing and services industries.

  • It will focus on MSMEs and small businesses.
  • It will address the quality and ecological needs of domestic and overseas customers, society, employees, partners, regulators, and investors.

The interested companies can apply online for the assessment and ZED certification of their products on the official website at zed.org.in. The ZED scheme guidelines are available at the below URL.

Download ZED scheme guidelines in pdf

More details such as scheme guidelines, assessment criteria and other details can be found on the official website of Zero Defect, Zero Effect scheme at the below URL.

Official website of ZED


NOTE -During the launch event of ZED scheme, PM also awarded a total of 227 industrialists with the national MSME (micro, small and medium enterprises) awards in different categories.


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