# Service sector to join zero defect scheme for MSMEs

2026-08-14T09:14:51+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

The government plans to include the service sector in the Zero Defect Zero Effect (ZED) scheme, officials said. MSME secretary Bharat Khera said discussions with the Quality Council of India and the National Productivity Council are underway to set quality parameters for services like healthcare and hospitality. Currently, the ZED scheme covers only manufacturing units. It provides subsidies of up to 80% for micro enterprises and funds technology upgrades. Service sector MSMEs account for 38% of India's 92 million small businesses. From April to December, 281,391 MSMEs were ZED-certified. The government spent Rs 241.24 crore on the scheme in FY25, up from Rs 192.79 crore the previous year.

## Coverage

- livemint.com <https://www.livemint.com/industry/manufacturing/service-sector-zero-defect-zero-effect-scheme-zed-scheme-msme-formalization-msme-secretary-bharat-khera-quality-norms-11786679886971.html>

Tags: Bharat Khera, Ease of Doing Business, MSME, quality certification, service sector, Zero Defect Zero Effect
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