After the successful launch of Start-Up India, another major initiative ZED would be rolled out soon. The acronym stands for zero defect, zero effect (on the environment) — high quality manufacturing that’s also green.

It was first mentioned by PM in his Independence Day Speech in 2014. In his August 2014 speech, Modi had said ZED would primarily look at “making our product which has ‘zero defect’ so that it does not come back (get rejected) from the world market and ‘zero effect’ so that the manufacturing does not have an adverse effect on our environment.”

It is expected to be launched in March. The programme aims at turning India into a global manufacturing hub, generating jobs, lifting incomes and boosting growth. ZED is meant to raise quality levels in the unregulated MSME sector. It is the engine of growth for the Indian economy, driving almost 38% of the nation’s GDP and employing 110 million Indians.

The ZED programme would be widely discussed at Make in India week next month. It is envisaged that ZED will enable & empower MSMEs across the country in all Make in India sectors. This would be facilitated through government-constituted quality control cells, which will also rate them, depending on yearly assessments of their products.

Maharashtra, Uttar Pradesh, Tamil Nadu, Gujarat and Karnataka, which account for 57% of total MSME employment and 59% of the sector’s exports are expected to be the initial focus states.

The initial focus sectors for Zed will be food and beverages, textiles, fabricated metals products, chemicals and wearing apparel. The key parameters of assessment include quality and environment factors that include process automation, process capability, design, safety and hygiene issues, waste management, defect rate and people management. Depending on the assessment, the units will be awarded ratings of bronze, silver, gold, diamond and platinum. A ZED platinum rating implies the manufacturer is of international standard and follows global best practices.

The pilot of ZED is being driven by Department of Industrial Policy and Promotion (DIPP) Secretary Amitabh Kant and the main scheme led by MSME Secretary Anup Pujari.

The Centre has also roped in Quality Council of India (QCI) for executing the plan and putting in place processes for the same. QCI was set up jointly by the government and Indian industry to establish and operate a national accreditation structure and promote standards through the National Quality Campaign. Former McKinsey & Company top honcho Adil Zainulbhai is the chairman of QCI.