**Summary:**
This document summarizes the Indian government's response to Lok Sabha Unstarred Question No. 3167, addressed to the Minister of Micro, Small and Medium Enterprises (MSME) on August 7, 2025, regarding quality standards for MSMEs. The government acknowledges the significant role of MSMEs in achieving the goal of becoming the third-largest global economy. To enhance global competitiveness, the government encourages MSMEs to comply with both voluntary and mandatory quality standards. Specific initiatives include promoting ISI marks through the Bureau of Indian Standards (BIS), issuing Quality Control Orders (QCOs) under the BIS Act 2016, and implementing Zero Defect Zero Effect (ZED) Certification and Lean Management practices. The ZED Certification aims to promote the manufacturing of quality products using advanced technology while minimizing environmental impact. The government emphasizes the critical role of MSMEs in contributing to the Zero Defect Zero Effect manufacturing strategy. Furthermore, the government states that it actively engages with MSME industry associations, cluster groupings, and regional organizations to develop policies on quality and address compliance challenges.
Key Entities Referenced
Ministry of Micro, Small and Medium Enterprises: The Indian government ministry responsible for the formulation and administration of rules, regulations and laws relating to micro, small and medium enterprises in India.
MSMEs: Micro, Small and Medium Enterprises; the subject of the policy, playing a significant role in the Indian economy.
Thiru Arun Nehru: Member of LOK SABHA who raised the question about Quality Standards for MSMEs.
Sushri Shobha Karandlaje: Minister of State for Micro, Small and Medium Enterprises who provided the answer to the question.
BIS Act 2016: An act of the Indian Parliament related to the Bureau of Indian Standards (BIS).
ISI mark: A standards-compliance mark for industrial products in India since 1955.
Zero Defect Zero Effect: A manufacturing approach focused on producing products with no defects and minimal environmental impact. Referred to as ZED.
QCOs: Quality Control Orders issued under BIS Act 2016.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION NO. 3167
TO BE ANSWERED ON 07.08.2025
QUALITY STANDARDS FOR MSMEs
3167. THIRU ARUN NEHRU:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) whether the Government acknowledges the significant role to be played by MSMEs in making
the country-third largest global economy;
(b) if so, the steps taken to encourage MSMEs to comply with voluntary and mandatory quality
standards to enhance global competitiveness;
(c) whether any schemes are in place to assist MSMEs in adopting national and international
certification and quality benchmarks and if so, the details thereof;
(d) the role of MSMEs in Government’s strategy for promoting ‘Zero Defect Zero Effect’
manufacturing; and
(e) the measures taken to ensure active participation of MSMEs in the formulation of quality
standards and resolving compliance challenges?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDMUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a) to (d): The Government has shown acknowledgement of the significant role played by MSME
in making the country third largest global economy through its constant efforts to provide programme
and policy solutions on the challenges faced. The steps taken to encourage MSME to comply with
quality standards include ISI mark by BIS, QCOs issued under BIS Act-2016, ZED Certification, Lean
Management practices. The ZED Certification envisages promotion of Zero Defect Zero Effect (ZED)
practices amongst MSME so as to encourage and enable MSMEs for manufacturing of quality products
using latest technology, tools and to constantly upgrade their processes for achievement of high quality
and high productivity with the least effect on the environment.
The role of MSME is critical, as it helps in providing a demonstrative effect for the overall
economic contribution towards Zero Defect in production and Zero Effect on environment.
(e): The Government constantly endeavors to engage with all stakeholders, including MSME
industry associations, cluster groupings and regional organizations in developing policy action on
quality and resolving compliance challenges.
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