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Service sector to join zero defect scheme for MSMEs
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…
The Story in Brief
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.
The Indian Opinion
The ZED scheme's expansion to services sounds promising, but the real test is execution. Quality parameters for healthcare or hospitality are far trickier to define than for manufactured goods. The government's claim of a trust-based system must be weighed against past compliance burdens. Will certification remain affordable for small clinics or dhabas? The key metric to watch is how many service MSMEs actually get certified in the first year after the rollout.
Source: livemint.com
This story was synthesised by AI from the source linked above.
