With Industry Leaders
(Addressing the nation on India’s 68th Independence Day, Hon’ble Prime Minister Shri Narendra Modi urged Indian industry, particularly the Micro, Small and Medium Enterprises (MSMEs), to manufacture products domestically with “zero defects” and to ensure these products have “zero effect” on the environment.
“We must manufacture in a way that our products are free from defects and are never returned when exported. Additionally, our production processes should have zero negative impact on the environment.”
With the vision of transforming India into a global manufacturing hub, the Prime Minister extended an open invitation to manufacturers and investors worldwide to set up manufacturing units in India.
“I appeal to people across the globe: ‘Come, Make in India’. Manufacture here and sell in any country of the world. We have the skill, talent, discipline, and determination to achieve excellence,” he said. He further added, “We want to offer the world a unique opportunity — from electrical to electronics, automobiles to agro-based industries, paper to plastic, satellites to submarines — ‘Come, Make in India’. Our country has the capability, and I extend this invitation to all.” Emphasizing the importance of national pride, he added, “As I say to the world ‘Come, make in India,’ I also urge the youth of our country to dream of making ‘Made in India’ a global identity. This should be our collective aspiration.”
Enhancing the competitiveness of India’s MSME sector is crucial, as it directly contributes to the growth of manufacturing and the overall economy. Global companies thrive on competitive advantages such as market-driven cost efficiency, technological edge, innovation, service excellence, lean manufacturing, and defect-free products — all aligning with the principles of Zero Defect and Zero Effect (ZED). Therefore, it is imperative that India accelerates its industrialisation and export-led growth to establish a strong presence in global markets and boost GDP.
Rationale
The launch of the Make in India initiative and the ZED philosophy highlights the government’s intent to transform the economy by positioning manufacturing as the key driver of sustainable growth. To implement this vision effectively, three critical pillars emerged as the foundation of this transformation:
Enhancing the Ease of Doing Business in India.
Building trust in the quality of raw materials, components, and services.
Ensuring the availability of skilled and capable human resources to support this shift.
While the Department for Promotion of Industry and Internal Trade (DPIIT) focused on improving the business environment, the Ministry of MSME, in collaboration with the Quality Council of India (QCI), began developing a comprehensive framework to engage MSMEs—long recognized as engines of sustainable growth—by enhancing their quality standards and competitiveness.
Thus, the ZED initiative was born. The ZED ecosystem is designed to create awareness, conduct assessments and certifications, provide expert guidance, and offer handholding support to MSMEs, helping them progress up the ZED maturity model. This not only boosts their competitiveness in the global arena but also empowers them to become truly Atmanirbhar (self-reliant). Additionally, it opens new career pathways for India’s youth.)
Introduction (As MSMEs are among the most significant drivers of economic growth, innovation, and employment, it becomes essential to strengthen their ecosystem. The Government of India conceptualized the Zero Defect Zero Effect (ZED) initiative to boost MSME competitiveness, promote sustainability, and enable them to emerge as both national and international champions.
The MSME Sustainable (ZED) Certification is a comprehensive initiative aimed at creating widespread awareness among MSMEs about ZED principles and encouraging them to pursue ZED Certification. It also seeks to motivate and incentivize MSMEs to strive towards becoming MSME Champions. Through the ZED Certification journey, MSMEs can significantly minimize waste, improve productivity, enhance environmental responsibility, conserve energy, utilize natural resources efficiently, and expand their market reach. Furthermore, it encourages MSMEs to adopt best practices in workplace culture, standardization of products, processes, and systems, thereby strengthening their global competitiveness and long-term sustainability. ZED Certification is designed to enhance MSME competitiveness through assessment, handholding, managerial, and technological interventions—making it much more than a mere certification.
The scheme is proposed to be implemented in two phases:
Phase 1: Targeted at manufacturing MSMEs with valid UDYAM Registration. This phase primarily aims to include the maximum number of manufacturing MSMEs and guide them through the ZED journey.
Phase 2: This phase will expand to include service sector MSMEs. It will also aim to onboard MSMEs—both manufacturing and service-based—that are registered under various State Government protocols/systems but not yet registered on the UDYAM portal. Additionally, this phase may involve collecting further data on MSME performance and operations to develop a National MSME Competitiveness Index.
In Phase 2, it is also proposed to offer financial support to ZED-certified MSMEs to obtain international certifications essential for accessing global markets. Furthermore, efforts will be made to align ZED Certification with international standards to ensure its global recognition and acceptance.)
- (The ZED Certification aims to promote the adoption of Zero Defect Zero Effect (ZED) practices among MSMEs with the objective to:
Encourage and empower MSMEs to manufacture products by leveraging modern technology and tools, while continuously upgrading their processes to achieve high quality and productivity with minimal environmental impact.
Develop a robust ecosystem for ZED-based manufacturing within the MSME sector, thereby enhancing their competitiveness and export potential.
Promote the widespread adoption of ZED principles and acknowledge the achievements of successful MSMEs.
Motivate MSMEs to attain higher levels of ZED Certification through a structured incentive framework.
Raise public awareness and demand for Zero Defect and Zero Effect products via the MSME Sustainable (ZED) Certification.
Identify potential areas for improvement to support government policy formulation and effective investment prioritization.
(Industry Awareness Programmes/Workshops: MSMEs will be sensitized about the MSME Sustainable (ZED) Certification through nationwide awareness programmes—conducted either online or in-person, as appropriate—with support from stakeholders such as Industry Associations, Implementing Agencies, MSME-DIs, District Industries Centres (DICs), Large Enterprises/OEMs, and the Bureau of Energy Efficiency (BEE).
Training Programmes: Key stakeholders, including MSME officers, assessors, and consultants, will be trained on the MSME Sustainable (ZED) Certification framework to ensure effective implementation. Training will be facilitated by partner organizations such as QCI, BIS, and NPC.
Assessment & Certification: MSMEs will undergo assessment—via desktop verification, remote assessment, or onsite evaluation, as applicable—and will be awarded the appropriate Certification Level based on their compliance with the criteria of that level.
Handholding Support: MSMEs will be provided with structured handholding support to help them achieve higher ZED Certification levels. This includes assistance for technology upgradation, adoption of zero-effect solutions, pollution control measures, and cleaner technologies.
Benefits/Incentives: The Ministry of MSME will introduce graded incentives to encourage MSMEs to strive for higher levels of ZED Certification. These benefits will also extend to supporting MSMEs in their preparedness and response to the COVID-19 pandemic through the MSME KAWACH (Knowledge Acquisition through WASH for Accelerated COVID-19 Handling) initiative, based on the WASH (Workplace Assessment for Safety & Hygiene) Standard.
PR Campaign, Advertising & Brand Promotion: To popularize the MSME Sustainable (ZED) Certification and enhance brand visibility, a nationwide publicity campaign will be undertaken.
Digital Platform: The entire ZED Certification process will be facilitated through a single-window digital platform, promoting minimal use of paper and enhancing efficiency through e-enablement.)
- (The MSME Sustainable (ZED) Certification can be achieved in three levels after registration and taking the ZED Pledge:
ZED Pledge
Certification Level 1: BRONZE
Certification Level 2: SILVER
Certification Level 3: GOLD
Every MSME beginning its ZED journey must first take the “ZED Pledge” before applying for any of the ZED Certification Levels—Bronze, Silver, or Gold.
Upon taking the ZED Pledge, MSMEs will also gain access to certification under the WASH Standard and other capacity-building initiatives through MSME KAWACH (Knowledge Acquisition through WASH for Accelerated COVID-19 Handling).
Once the pledge is taken, MSMEs may apply for any Certification Level they believe they meet, based on the criteria defined for each level. The purpose of the ZED Pledge is to serve as a pre-commitment—a solemn promise by MSMEs to uphold the principles of Zero Defect and Zero Effect in their operations and to actively pursue continuous improvement along the ZED journey.)
- (All MSMEs registered on the UDYAM Registration Portal (under the Ministry of MSME) are eligible to participate in the MSME Sustainable (ZED) Certification and avail associated benefits and incentives.
Currently, only manufacturing units are eligible to apply for the ZED Certification under the first phase of implementation. This phase is actively operational and receiving funding support at present.)
- (” change this paragraph with miner grammatical and some other words without changes any meaning or values regarding ZEDAny number of units registered under a single UDYAM Registration can apply for subsidies under this Scheme. However, each unit (under the same UDYAM Registration) must apply for ZED Certification separately in order to avail of subsidies, benefits, and incentives.
- a) Financial Assistance/Subsidy:
MSMEs will be provided financial support/subsidy to obtain a ZED Certification Level. The subsidy structure for certification cost is as follows:
Micro Enterprises: 80%
Small Enterprises: 60%
Medium Enterprises: 50%
Additional Subsidies:
An additional 10% subsidy will be provided to MSMEs that fall under any of the following categories:
Owned by Women, SC/ST Entrepreneurs
Located in NER (North Eastern Region), Himalayan, LWE (Left Wing Extremism), Island Territories, or Aspirational Districts
An additional 5% subsidy will also be available for MSMEs that are part of the following schemes:
SFURTI (Scheme of Fund for Regeneration of Traditional Industries)
MSE-CDP (Micro & Small Enterprises – Cluster Development Programme) of the Ministry
MSMEs may choose to upgrade their Certification Level (e.g., from Bronze to Silver or Gold) at any time before the expiry of their current ZED Certification. The cost and subsidy structure for the newly applied level will remain the same.
- b) Joining Reward:
A limited-purpose joining reward of ₹10,000/- will be granted to each MSME upon taking the ZED Pledge. This reward must be utilized within a defined time period and strictly for the purposes specified under the following conditions:
The reward can be availed only once while applying for any ZED Certification Level (Bronze, Silver, or Gold).
If the reward is used towards certification, its amount will first be deducted from the certification cost, and then the applicable subsidy will be calculated on the remaining amount.
For example:
If an MSME uses the reward for Bronze Certification, the effective cost becomes zero.
If applying for Silver or Gold Certification, the ₹10,000 reward will be adjusted against the total certification cost, and subsidy will apply on the remaining balance, based on the MSME’s category (Micro, Small, or Medium).
This joining reward remains valid for one year from the date of taking the ZED Pledge.)
- (ZED Certification can be attained on 3 levels after taking the ZED Pledge:
ZED Pledge
Certification Level 1: BRONZE
Certification Level 2: SILVER
Certification Level 3: GOLD
- a) After taking the ZED Pledge, an MSME can apply online for any Certification Level (Bronze, Silver, Gold) and would need to conform to all the requirements of the level applied for, in order to obtain the Certification.
- b) Every MSME embarking on the journey of ZED must submit an Undertaking.
- c) In case of a non-conformity, the applicant MSME would be given an opportunity to close the non-conformity(ies), in a defined time period, in order to be eligible for the desired level/Certification.
- d) The Final ZED Certificate will be issued based upon the findings and recommendation of the Accredited Assessment Agencies.
Ministry of MSME reserves the right to visit & inspect any MSME after Certification, which has availed any subsidy, benefit or incentives under this Scheme.
The process flow and requirement for each level is highlighted in subsequent pages.)
- (MSMEs with a minimum Bronze level ZED Certification are eligible to apply for handholding support. A provision of up to ₹5 lakhs per MSME has been made available under the ZED Certification scheme for handholding and consultancy support, aimed at helping MSMEs progress toward Zero Defect Zero Effect (ZED) solutions.
Out of this total amount:
Up to ₹2 lakhs may be utilized for handholding support (as required), provided through approved consulting organizations.
Up to ₹3 lakhs may be allocated for technology upgradation, to support the adoption of zero effect solutions, pollution control measures, and cleaner technologies.
The utilization of the ₹3 lakh financial support for moving toward zero effect solutions will be subject to:
Recommendations from the designated consultant,
Verification by the respective MSME-DI, and
Approval from the Project Monitoring and Approval Committee (PMAC).
Subsidy Structure:
The Ministry of MSME will provide subsidies for handholding and technology upgradation support as follows:
Micro Enterprises: 80%
Small Enterprises: 60%
Medium Enterprises: 50%
Additional Subsidies:
An additional 10% subsidy will be provided for MSMEs that are:
Owned by Women, SC/ST entrepreneurs, or
Located in NER (North Eastern Region), Himalayan, LWE (Left Wing Extremism), Island territories, or Aspirational Districts.
An additional 5% subsidy will be granted to MSMEs participating in:
The SFURTI (Scheme of Fund for Regeneration of Traditional Industries), or
The Micro & Small Enterprises – Cluster Development Programme (MSE-CDP) of the Ministry.)
- (MSMEs with at least a Bronze level ZED Certification are eligible to apply for handholding support. Under the ZED Certification scheme, a provision of up to ₹5 lakhs per MSME has been allocated to provide consultancy and handholding support, aimed at enabling MSMEs to adopt Zero Defect Zero Effect (ZED) solutions.
This financial support is divided as follows:
Up to ₹2 lakhs may be utilized for handholding support, delivered through approved consulting organizations, as needed.
Up to ₹3 lakhs may be used for technology upgradation, supporting the adoption of zero effect solutions, pollution control measures, and cleaner technologies.
The utilization of the ₹3 lakh support for zero effect solutions is contingent upon:
Recommendations from an authorized consultant,
Verification by the concerned MSME-DI, and
Approval by the Project Monitoring and Approval Committee (PMAC).
Subsidy Structure
The Ministry of MSME will subsidize handholding and technology upgradation support based on the MSME category:
Micro Enterprises: 80% subsidy
Small Enterprises: 60% subsidy
Medium Enterprises: 50% subsidy
Additional Subsidies
An additional 10% subsidy will be provided to MSMEs that are:
Owned by Women, SC/ST entrepreneurs, or
Located in NER (North Eastern Region), Himalayan regions, LWE (Left Wing Extremism) areas, Island territories, or Aspirational Districts.
An additional 5% subsidy will be granted to MSMEs participating in:
The SFURTI (Scheme of Fund for Regeneration of Traditional Industries), or
The Micro & Small Enterprises – Cluster Development Programme (MSE-CDP) of the Ministry.)
- (After the expiry of the ZED Certificate’s validity, MSMEs may apply for renewal of their ZED Certification level to continue availing the associated benefits and incentives.)
1024 Bronze
48Silver
6 GOLD
37 HAND HOLDING
AR Edutech ZED Certification प्रक्रिया के लिए किसी भी प्रकार का प्रत्यक्ष या अप्रत्यक्ष शुल्क (Fee) नहीं लेता है। ZED Bronze Certificate सभी Manufacturing MSMEs के लिए पूरी तरह से निःशुल्क (Free) है।
इस प्रमाणपत्र को प्राप्त करने के बाद, आप भारत सरकार द्वारा प्रदान किए जाने वाले कई वित्तीय लाभों (Financial Benefits) और मान्यता (Recognition) के पात्र बन जाते हैं।
AR Edutech, Quality Council of India (QCI) के ZED Division से अधिकृत (Empaneled) संस्था है, जो आपको ZED Certification, Consulting तथा इससे जुड़े लाभ प्राप्त करने की पूरी प्रक्रिया में मार्गदर्शन और सहयोग प्रदान करती है। अधिक जानकारी या निःशुल्क सहायता के लिए आज ही AR Edutech Team से संपर्क करें।
ZED Isn’t an Option Anymore – It’s the Key to Staying Ahead. Do You Have It ?
MSME Sustainable (ZED) Certification
Complete Support for All ZED Services
ZED Certification
For MSMEs
Handholding/ Consultancy
For MSMEs
Financial Institutions
Incentives by Banks
Ministry of MSME
Incentives by MSME through its schemes
States/UTs
Incentives by States/UTs
Other Incentives
Incentives by Central Ministries/Other Organizations