ZED Certification scheme to boost Indian exports
Zero Defect Zero Effect (ZED) certification has been ensuring that Indian export goods meet up to the global quality standards, and was acting as a catalytic force for Make In India initiative.
Union Minister for MSMEs Narayan Rane on April 28 launched MSME Sustainable (ZED) Certification scheme, further incentivising ZED certification.
He said that ZED will not only attempt to improve productivity & performance, but also change mind-set of manufacturers to make them more environmentally conscious.
Zero Defect Zero Effect
ZED scheme envisages to manufacture goods in such a way that they carry “zero defect”, so that India’s exported goods are never returned to the country.
”Zero effect” means manufacturing goods with the view that they should not have a negative impact on the environment. Through ZED Certification, MSMEs can reduce wastage substantially, increase productivity, enhance environmental consciousness, save energy and expand their markets.
MSME Sustainable (ZED) Certification Scheme
Under the scheme, Micro Enterprises will get 80 percent subsidy, on the cost of ZED certification, and small enterprises and medium enterprises will get 60 percent and 50 percent subsidy respectively.
There will be an additional subsidy of 10% for the MSMEs owned by Women/SC/ST Entrepreneurs or MSMEs in NER/Himalayan/LWE/Island territories/aspirational districts. In addition to above, there will be an additional subsidy of 5% for MSMEs which are also a part of the SFURTI OR Micro & Small Enterprises – Cluster Development Programme (MSE-CDP) of the Ministry. Further, a limited purpose joining reward of Rs. 10,000/- will be offered to each MSME once they take the ZED Pledge.
As of 29 November 2021, 23,948 MSMEs had registered with intent to adopt the principle of the Zero Defect Zero Effect Scheme (ZED).
Other schemes to support MSMEs
The government runs more than 20 different schemes to support MSMEs such as Prime Minister Employment Guarantee Program (PMEGP), Scheme of Fund for Regeneration of Traditional Industries(SFURTI) and MSE- Cluster Development program (CDP).
PMEGP is a bank-financed subsidy program for setting up new microenterprises in non-farm sector.
SFURTI organize traditional industries and artisans into clusters in order to make them competitive and provide support for their long- term sustainability. SFURTI provides support up to Rs. 2.5 cr. to clusters with 500 artisans and above Rs. 5 cr. for clusters with more than 500 artisans.
MSE-CDP addresses common issues of MSMEs such as improvement of technology, skills & quality, market access, etc. The scheme creates or upgrades infrastructural facilities in the new or existing industrial Areas or clusters of MSEs.
