MSME Sustainable (ZED) Certification
ZED Helping MSMEs achieve Zero Defect, Zero Effect manufacturing for improved quality, sustainability, and competitiveness.
The MSME Sustainable (ZED) Certification, a clarion call of the Hon’ble Prime Minister Shri Narendra Modi under the aegis of Make in India, seeks nothing less than a paradigm shift in our nation’s industrial ethos. It exhorts Indian enterprises to aspire not merely for adequacy but for excellence without excrescence.
It emphasises two core principles:
- Zero Defect: Delivering products of the highest quality that meet global standards and delight consumers.
- Zero Effect: Ensuring minimal impact on the environment and society.
At the heart of this transformative initiative lie the micro, small, and medium enterprises (MSMEs) — the unsung stalwarts of our economy, employing over 80% of the workforce. Through handholding, guidance, and facilitation, MSMEs are encouraged to adopt quality practices, improve energy efficiency, and compete globally.
The Quality Council of India (QCI) has developed the ZED model to grade and enhance enterprises on multiple parameters, supporting India’s commitment to ease of doing business, reliable sourcing for investors, and creating skilled human resources.
With the goal of transforming small and medium enterprises, the ZED scheme is a step towards sustainable growth, global competitiveness, and responsible industrialisation.
The ZED Certification is more than a standard — it is a movement to inspire MSMEs to embrace Zero Defect, Zero Effect practices and shape a future where Indian enterprise thrives with quality, responsibility, and global relevance. Its objectives are to:
- Champion Quality & Innovation
Encourage MSMEs to produce world-class products using modern tools and technologies, while continuously upgrading processes for higher productivity with minimal environmental impact. - Build a ZED Ecosystem
Create a supportive environment where sustainable practices become the norm, boosting competitiveness and enabling Indian MSMEs to shine in export markets. - Recognise & Reward Excellence
Celebrate MSMEs that successfully adopt ZED principles, making them role models for others to follow. - Motivate with Incentives
Inspire enterprises to aim higher and reach advanced certification levels through a system of graded rewards and benefits. - Shape Consumer Awareness
Promote demand for ZED-certified products, fostering a culture where quality and sustainability are valued by the public. - Guide Policy & Investment
Identify areas of improvement within MSMEs, equipping the government with insights for stronger policy-making and smarter investment priorities.
The ZED Certification, at its heart, is about transforming MSMEs into engines of quality, sustainability, and trust — creating an ecosystem where “Made in India” means world-class, responsible, and future-ready.
1. Industry Awareness Programmes/Workshops
MSMEs are informed about the MSME Sustainable (ZED) Certification through extensive awareness programmes conducted nationwide. These programmes take place both online and in person, ensuring accessibility for enterprises across urban and rural areas. With the active support of stakeholders such as industry associations, implementing agencies, MSME-DIs, District Industries Centres (DICs), large enterprises and OEMs, as well as the Bureau of Energy Efficiency (BEE), the initiative reaches a wide audience.
The objective is not merely to spread information but to build understanding and inspire participation. Through workshops, seminars, campaigns, and collaborative events, MSMEs gain clarity on the principles of Zero Defect, Zero Effect, the benefits of certification, and the pathways available for improving their quality standards and environmental responsibility. These programmes act as the first step in guiding enterprises towards a culture of sustainability and global competitiveness.
2. Training Programmes
MSME officers, assessors, and consultants receive structured training on the MSME Sustainable (ZED) Certification to ensure a strong foundation for implementation. These programmes are designed not only to build technical knowledge but also to equip participants with the skills needed to guide and support enterprises effectively.
Through specialised modules, participants learn about the certification framework, assessment methodologies, sustainability practices, and quality enhancement measures. Partners such as the Quality Council of India (QCI), the Bureau of Indian Standards (BIS), and the National Productivity Council (NPC) play a central role in delivering this training, ensuring that global best practices and national priorities are seamlessly integrated.
3. Assessment & Certification
MSMEs go through a well-defined assessment journey that may involve desktop verification, remote evaluation, or comprehensive onsite inspections, depending on the certification level they aspire to achieve. Each stage looks closely at how the enterprise manages quality, optimises resources, safeguards its workforce, and minimises environmental impact.
When an MSME successfully demonstrates compliance with the required standards, it is conferred the appropriate ZED Certification level. This recognition is more than a certificate — it becomes a mark of credibility, a symbol of trust, and a gateway to new opportunities, helping enterprises stand taller in both domestic and global markets.
4. Handholding
MSMEs receive continuous support to achieve higher ZED certification levels, adopt cleaner technologies, implement pollution-control measures, and move towards zero effect solutions.
5. Benefits & Incentives
The Ministry of MSME provides graded incentives to motivate enterprises to reach higher certification levels. These include support under MSME KAWACH (Knowledge Acquisition through WASH for Accelerated COVID-19 Handling), based on the WASH (Workplace Assessment for Safety & Hygiene) standard, to strengthen preparedness and resilience.
6. PR Campaign, Advertising & Brand Promotion
To popularise the MSME Sustainable (ZED) Certification and build a strong national brand for ZED, extensive publicity campaigns are carried out across the country. These include strategic PR initiatives, advertising across multiple media channels, and promotional activities designed to reach MSMEs, industry stakeholders, and the wider public. The objective is not only to create awareness but also to inspire enterprises to embrace the values of quality, sustainability, and global competitiveness that ZED represents.
7. Digital Platform
The ZED certification is powered by a paperless, single-window digital platform that brings the entire process — from registration and documentation to assessment and certification — onto one seamless interface

The ZED Certification isn’t just a badge — it’s a journey of commitment and excellence, unlocked through three progressive levels:
- Bronze – the first step toward quality and responsibility
- Silver – deeper commitment to sustainability and efficiency
- Gold – the pinnacle of excellence, where global standards are met with pride
- It begins with a promise. Every MSME takes the ZED Pledge — a declaration to embrace the values of Zero Defect, Zero Effect in everything they do.
- The pledge brings rewards. With it comes instant access to the WASH Standard Certification and capacity-building programmes under MSME KAWACH, helping enterprises build safer, cleaner, and more resilient workplaces.
- The climb continues. After pledging, an MSME may aim for Bronze, Silver, or Gold certification, depending on its readiness. Each level achieved isn’t just recognition — it’s proof of growth, credibility, and a future-ready mindset.
The pledge is more than a formality. It is the spark that ignites the ZED journey, urging enterprises to rise higher with every step.
All MSMEs registered with the UDYAM registration portal (of the MoMSME) will be eligible to participate in MSME Sustainable (ZED) Certification and avail related benefits/incentives.
ZED Certification helps MSMEs improve quality, productivity, and sustainability while reducing waste, defects, and environmental impact. It also offers financial incentives, national recognition, and greater market competitiveness.
1. Financial Benefits
- Subsidy on certification cost (up to 80% for micro, 60% for small, 50% for medium enterprises).
- Additional 10% subsidy for women-owned, SC/ST-owned MSMEs, and units in NER, Himalayan, LWE, Island territories, or aspirational districts.
- Additional 5% subsidy for MSMEs under SFURTI or MSE-CDP clusters.
- Financial assistance for testing, product certification, and quality systems.
- Subsidy for technology upgradation towards Zero Effect solutions.
- Support for handholding and consultancy.
- Incentives from state governments and financial institutions (e.g., interest rate concessions, fee reductions).
2. Process Benefits
- Establishes standardised processes for consistent product quality.
- Reduces defects and rejections through improved monitoring and control.
- Increases productivity and operational efficiency.
- Enhances workplace safety systems to prevent accidents.
- Promotes energy efficiency and optimal use of natural resources.
- Encourages adoption of sustainable and environmentally responsible practices.
- Improves customer satisfaction through better quality and reliability.
Modiji’s Message
Now, we have to walk towards being the best in the world in the manufacturing sector. I had said from the Red Fort Zero Defect, Zero Effect. There should be no defect in our products and the process should not have an effect on the environment. We have to go before the world with this ‘Zero Defect, Zero Effect’.
Hon’ble PM, Shri Narendra Modi
Special Session of Parliament