The Ministry of Micro, Small and Medium Enterprises (MSME) is actively promoting the ‘MSME Sustainable (Zero Defect, Zero Effect – ZED) Certification Scheme’ to foster quality-driven and eco-friendly manufacturing. Under this scheme, women-owned MSMEs receive a 100% subsidy for ZED certification, effectively eliminating the cost of certification for them.
The government implemented this facility on November 11, 2023, to enable women entrepreneurs to enhance their business competitiveness by adopting standards related to quality, productivity, safety, and the environment.
According to the Ministry of MSME, the ZED scheme aims to encourage industries to manufacture high-quality products in line with the ‘Zero Defect, Zero Effect’ principle and to minimize their environmental impact. The scheme also assists MSMEs with technology upgrades, improvements in production processes, and the adoption of sustainable manufacturing practices.
Under the scheme, MSMEs are awarded certification in Bronze, Silver, and Gold categories. Eligible units receive financial assistance of up to 75% (capped at ₹50,000) for testing, systems, and product certification; up to ₹2 lakh for handholding and consultancy; and up to ₹3 lakh for adopting pollution control measures and clean technologies.
According to government data, approximately 9.49 lakh MSMEs have registered under the scheme. Of these, over 6.67 lakh Bronze, 6,700 Silver, and 4,800 Gold ZED certifications have been issued. Financial assistance exceeding ₹913 crore has been provided under the scheme so far.
The scheme’s impact continues to grow. Twenty-two states and Union Territories have incorporated ZED into their industrial policies, introducing additional incentives for certified MSMEs. Meanwhile, 19 financial institutions are offering benefits such as concessions on processing fees and interest rates to ZED-certified units, making it easier for them to access financial assistance.
The Ministry of MSME has also shared two success stories. Finex Industries Private Limited, based in Nashik, Maharashtra, recorded an 11% reduction in the Cost of Poor Quality (COPQ), a 10% decrease in rework, and a 1% drop in product defects after obtaining ZED Silver certification. Similarly, Concept Clothing Private Limited, based in Jalandhar, Punjab, achieved an 80% reduction in workplace accidents, a 7.4% decrease in rework, and a 4% drop in rejections after adopting ZED.
The government believes that ZED certification will further strengthen the competitiveness of Indian MSMEs in both domestic and global markets by promoting quality, efficient resource utilization, and environmental conservation.
