New Delhi: In a major push to strengthen women-led enterprises, the Ministry of Micro, Small and Medium Enterprises (MSME) is providing 100% subsidy on Zero Defect Zero Effect (ZED) Certification for eligible women-owned MSMEs. The initiative removes the cost of certification, enabling women entrepreneurs to improve manufacturing quality, productivity and environmental sustainability while enhancing their competitiveness.
The support enables women-owned enterprises to assess and strengthen their manufacturing systems against recognised standards of quality, safety, productivity and environmental sustainability. By removing the certification cost, the initiative helps women-led businesses improve market credibility and prepare for wider business opportunities.
Scheme Supports Quality Manufacturing and Technology Upgradation
The MSME Sustainable (ZED) Certification Scheme encourages enterprises to manufacture high-quality products while minimising environmental impact. It provides a structured framework for continuous improvement through assessment, certification, incentives and technology upgradation.
The certification framework includes Bronze, Silver and Gold levels, allowing MSMEs to progressively adopt higher standards of manufacturing excellence and sustainability.
Apart from free certification for eligible women-owned MSMEs, the scheme also provides financial assistance of:
- Up to 75% of testing, system or product certification costs (maximum ₹50,000).
- Up to ₹2 lakh for handholding and consultancy support.
- Up to ₹3 lakh for adopting Zero Effect solutions, pollution-control measures and cleaner technologies.
Concept Clothing Pvt. Ltd. Demonstrates ZED’s Impact
Concept Clothing Pvt. Ltd., based in Jalandhar, Punjab, achieved ZED Silver Certification on 14 June 2025, reinforcing its commitment to quality, sustainability and operational excellence.
After adopting ZED practices, the enterprise reported:
- 80% reduction in workplace incidents.
- 50% reduction in Mean Time to Repair (MTTR).
- 7.4% reduction in rework.
- 4% reduction in rejection.
- Significant savings through quality, environmental and workplace improvement initiatives.
According to the enterprise, ZED Certification has strengthened operational discipline, improved process efficiency and enhanced overall competitiveness, demonstrating the benefits of the Zero Defect Zero Effect (ZED) framework for MSMEs.
Over 9.49 Lakh MSMEs Registered Under the Scheme
According to the Ministry, as of 7 July 2026, nearly 9.49 lakh MSMEs had registered under the ZED Certification Scheme.
Among them:
- More than 6.67 lakh received Bronze certification.
- Around 6,700 earned Silver certification.
- Over 4,800 achieved Gold certification.
The government has also provided more than ₹913 crore in financial support to help MSMEs adopt quality and sustainable manufacturing practices.
States and Financial Institutions Extend Additional Benefits
The scheme’s impact has expanded beyond certification. Twenty-two States and Union Territories have incorporated ZED into their industrial policies and offer additional incentives to certified MSMEs.
In addition, 19 financial institutions provide benefits such as concessions in processing fees and interest rates, improving access to finance for ZED-certified enterprises.
The Ministry said the scheme is strengthening MSME competitiveness, improving market credibility and helping enterprises integrate more effectively into domestic and global value chains while promoting sustainable manufacturing practices.
About The Zero Defect Zero Effect (ZED) Scheme
Launched by the Ministry of Micro, Small and Medium Enterprises (MSME), the Zero Defect Zero Effect (ZED) Certification Scheme is designed to help micro, small and medium enterprises adopt globally accepted manufacturing practices.
The scheme encourages businesses to produce high-quality products while reducing resource consumption and environmental impact, thereby improving their competitiveness in domestic and international markets.
Through a structured certification framework and continuous improvement approach, ZED supports MSMEs in aligning with modern quality and sustainability standards while promoting long-term industrial growth.
