MSME Sustainable (ZED) Certification Scheme

Narayan Rane, Union Minister for Micro, Small and Medium Enterprises launched the MSME Sustainable (ZED) Certification Scheme on 28th April 2022. ZED has the potential of becoming a national movement and it has the aim of providing a roadmap to global competitiveness for the MSMEs of the country.


  • ZED will be attempting to improve performance and productivity.
  • This scheme will be looking to make the manufacturers more environmentally conscious.
  • This scheme will facilitate and enable the MSMEs to adopt Zero Defect Zero Effect (ZED) practices.
  • Under this scheme the MSMEs will be motivated and incentivized for ZED Certification while they will be encouraged to become MSME Champions.

How will ZED certification help the MSMEs?

Via the ZED Certification, the MSMEs will be able to reduce wastages, enhance environmental consciousness, increase productivity, optimally use natural resources, save energy, expand their markets, etc.

About the scheme

ZED is a certification for MSME that has been introduced to urge the MSME industries to manufacture goods in India with “Zero Defects” so that the goods that are exported are not returned due to bad quality. The certified good must also ensure “Zero Effect” meaning the goods shouldn’t have a negative effect on the environment.

ZED Rating

ZED rating has been introduced to enhance the quality of the country’s MSMEs. The aim of the ratings is to improve the process and to move up the assessment model which is: Bronze – Silver – Gold – Diamond – Platinum.

The rating provided will be valid for a 4 years period. Quality Council of India will be carrying out the surveillance audit.

Subsidies that will be provided

Under this Scheme, MSMEs will receive subsidies according to the following structure, on the ZED certification cost:

  • Small Enterprises: 60 percent
  • Micro Enterprises: 80 percent
  • Medium Enterprises: 50 percent

An additional 10 percent subsidy will be provided to the MSMEs that are owned by Women/ST/SC entrepreneurs or the MSMEs that are located in The North Easters, Himalayan, aspirational districts, and Island territories. Also, an additional subsidy of 5 percent for the MSMEs which are part of the SFURTI or the Micro & Small Enterprises – Cluster Development Programme (MSE-CDP) will be provided. A Rs 10000 limited purpose joining reward will also be offered to the MSMEs once they take the ZED Pledge.

Consultancy and Handholding Support

Up to Rs. 5 lakh per MSME will be provided for the purpose of consultancy and handholding support under the ZED Certification so as to assist them to move towards the solutions of Zero Defect Zero Effect. The MSMEs will also be able to avail a plethora of other incentives that will be offered for ZED Certification by the UTs and the States, Financial Institutions, etc. The MSMEs will also be able to apply for free Certification under the government’s MSME KAWACH initiative.




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