The Ministry of Micro, Small and Medium Enterprises is promoting the MSME Sustainable (ZED) Certification Scheme to enhance quality-driven and environmentally responsible manufacturing among MSMEs. A key feature is the 100% subsidy on ZED certification costs for women-owned MSMEs, effective from 11 November 2023, which eliminates the financial barrier for women entrepreneurs seeking certification.
As of 7th July 2026, the scheme has achieved significant scale with approximately 9.49 lakh MSME registrations. Certification awards include over 6.67 lakh Bronze, 6,700 Silver, and 4,800 Gold certifications. The initiative has provided more than ₹913 crore in financial support to enterprises adopting quality and sustainable manufacturing practices.
Case studies demonstrate tangible benefits: Finex Industries Pvt. Ltd. (Nashik) achieved ZED Silver Certification on 14 July 2025, resulting in 11% reduction in Cost of Poor Quality, 10% reduction in rework, 1% reduction in defects, and improvements in workplace safety and resource utilization. Concept Clothing Pvt. Ltd. (Jalandhar) achieved ZED Silver on 14 June 2025, reporting an 80% reduction in workplace incidents, 50% reduction in Mean Time to Repair, 7.4% reduction in rework, and 4% reduction in rejection rates.
The ZED certification framework offers Bronze, Silver, and Gold levels, enabling progressive achievement of higher standards. Financial assistance includes up to 75% of testing/certification costs (max ₹50,000), up to ₹2 lakh for handholding/consultancy, and up to ₹3 lakh for adopting Zero Effect solutions and cleaner technologies.
Broader ecosystem support includes integration of ZED into industrial policies of 22 States/UTs offering additional incentives, and 19 financial institutions providing benefits such as concessions in processing fees and interest rates to certified enterprises.