The central nerve of the Indian economy, accounting for 30% of the GDP, employing over 114 million people, and contributing to 50% of India’s exports, are India’s MSMEs (Micro, Small and Medium enterprises). Digitisation of MSMEs alone could add $158 to 216 billion to India’s GDP by 2024.
There’s never been a better time to be an MSME business, than today. Private investment is booming, policy changes have made it ever easier to start and run a business and India’s infrastructure investments are setting off multipliers for its businesses. India’s technological power is on display with the India stack, which is already adopted by billions of individuals and businesses, and is ushering in a new era of financial and social inclusion. India is also poised to be the largest provider of human resources in the world among major countries, precisely when populations in many advanced countries would be ageing fast.
Clearly, harnessing the power of these businesses is key to achieving India’s $5 trillion economy ambition. This is a vision the Quality Council of India (QCI) shares. QCI is enabling India to take her rightful place as a global leader by creating a ready pipeline of integrity driven businesses and the sustainable growth they will bring. The key tenets of this vision coalesced to form the Zero Defect, Zero Effect (ZED) certification program under the aegis of the Ministry of MSME. The ZED certification program aims to shape the narrative for growth that is good for people, and the planet.
Zero defect means that Indian businesses must comply with higher quality standards. This makes them highly competitive, and will grow their demand and reputation organically, not just in India but overseas. This will also create a multiplier effect as more and more Indian businesses achieve these standards, making India synonymous with higher levels of quality, timeliness and integrity.
Zero effect means that Indian businesses will comply with aggressive green standards that place stringent demands on businesses to find ways to create high quality goods and services while having zero adverse effects on the environment. As adoption grows, Indian businesses will set the benchmark for how to grow businesses in ways that are both ecologically and economically sustainable.
While the ripple effects of this program empower all Indian businesses, for MSMEs, the ZED scheme creates enormous potential for growth. Implemented in two phases, the ZED certification now applies to products and services. ZED certified MSMEs enjoy an assurance of quality, value and integrity in the minds of their customers, investors, suppliers and employees, which allows them to attract the best among them. This boosts their ability to make decisions from a place of strength – be it which suppliers to contract with, who to hire, or even who to accept investments from. Moreover, ZED certified MSMEs are often given preference in lending, and are eligible for concessions in processing fees and interest rates from banks. They often have better credit ratings too.
Given that their products and services ascribe to both higher quality and sustainability standards, ZED certified MSMEs find new markets and geographies open to them, particularly when it comes to exports to the west. The GOI also makes it easier to participate in business exhibitions and trade fairs in India and overseas by subsidising stall charges, airfares, and freight charges.
However, MSMEs don’t need to wait to qualify for ZED Certification to benefit from the scheme. The process of ZED Certification itself helps businesses understand exactly where their gaps are, and where they need to improve as a business. QCI consultants work closely with businesses to conduct gap analysis, followed by handholding and consultancy to help them improve their ratings. As the ratings improve, so does the resiliency and potency of the business.
This is how businesses can build strength. By reducing defects, rework and scrap; by improving productivity and first time pass rates, which in turn mean that their ROI is greater. On time delivery and a reduction in customer complaints helps create brand value and goodwill, and, of course, repeat business.
In essence, quality opens doors.
The process for ZED certification is dead simple, on purpose. Here’s the 5 step process:
- Free online registration and pledge by MSME
- Upload basic information and documentation
- Desktop / Remote / On Site Assessment based on the information uploaded
- Receive certification and download the certificate from the app
- Avail incentives
Interested parties can begin the process right now, here.
ZED certification consists of three levels – Bronze, Silver and Gold. MSMEs can apply for any of the certification levels, depending on their readiness. To encourage more MSMEs to apply, the Ministry of MSMEs has announced a subsidy of 80%, 60% and 50% for Micro, Small and Medium enterprises respectively. The Ministry of MSME has also roped in the state governments, various ministries, financial institutions and banks that are extending a plethora of incentives. More details about the scheme and benefits can be accessed here.
However, ZED certification, like all worthy achievements, doesn’t come easy. The aim of the ZED maturity assessment model is to rate, assess and handhold MSMEs, and to take them to higher maturity levels, making them globally competitive. It is a tall ask. The GOI sees the ZED scheme as a lever with which it can move the economy to $5 Trillion in 2026 and then to $10 Trillion in 2033. For it to be effective, it also has to be stringent.
With the ZED program, QCI is leveraging its 25 years of experience in raising the bar on quality in India, to create an ecosystem that allows MSMEs to step into their power, with confidence.
To know more about QCI, and India’s Gunvatta se Atmanirbharta initiative and the many ways in which it has impacted our lives, visit https://www.news18.com/qci/.
This is a partnered post.
Read all the Latest News here
Comments
0 comment