Less Than 1% of MSMEs are ZED Certified in India: FOPSIA

Among 6 crore Micro Small and Medium Enterprises (MSMEs) in India, the number of successful Zero Defect Zero Effect (ZED) certified companies are merely less than 200, said Federation of Punjab Small Industries Association (FOPSIA).

In a media interaction, President of FOPSIA, Badish Jindal explained the reason for less number of registered MSMEs for ZED rating. He said, "The benchmark for ZED is very high and it’s hard for the Indian companies to comply with such benchmarks or parameters. That’s why in India among 6 crore MSMEs the number of successful ZED certified companies are merely less than 200."

He also said, “The government need to rethink about its parameters as the set parameters are very high to comply by Indian industries.”

Since, ZED is based on international standards and Indian companies has been working on traditional systems, therefore it is necessary that government rethink about its parameters, he opined.

Jindal stated “There is a dire need to delink ZED from many government schemes.”

According to information available on ZED website, the number of ZED certified MSMEs or who have got ratings in Punjab are only eight. While in Gujarat, only 24 companies are ZED certified MSMEs or who have got ratings.

The number of ZED certified MSMEs are 14 in Haryana, 17 in Karnataka, 7 in Uttar Pradesh only 2 in Goa, according to the available data.

The ZED scheme of government was introduced with an objective of inculcating Zero Defect & Zero Effect practices in manufacturing processes, ensure continuous improvement and supporting the Make in India initiative.

However, the scheme is not mandatory but voluntary to provide the MSMEs a roadmap to global competitiveness.