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The MSME Sustainable (ZED) Certification Scheme promotes quality, sustainability, and competitiveness among micro, small and medium enterprises across India.
The MSME Sustainable (ZED) Certification Scheme was launched by the Ministry of Micro, Small and Medium Enterprises (MSME) on 28th April, 2022. “ZED” stands for Zero Defect Zero Effect, which translates to producing high-quality products while ensuring minimal environmental impact.
The scheme incentivises the MSMEs to adopt best manufacturing practices, energy-efficient technologies, and eco-friendly systems. It also helps them improve resource management, cut costs, and strengthen market credibility through certification and financial incentives.
The features and benefits of the MSME Sustainable (ZED) Certification Scheme can be summed up as follows:
It promotes sustainable manufacturing and resource efficiency.
The scheme encourages adoption of clean technology and waste reduction methods.
Magnifies the global competitiveness of Indian MSMEs.
Provides a joining reward of ₹10,000.
Provides 50-80% subsidy to MSMEs.
Offers additional subsidies to MSMEs owned by women or SC/ST individuals.
Offers additional subsidies to MSMEs in Himalayan, NER (North Eastern Region), or island territories.
Special subsidies are offered to MSMEs which are part of the SFURTI programme.
Financial assistance for acquisition of testing or quality certification.
Provides handholding support of up to ₹2 Lakhs.
There are three levels of MSME Sustainable (ZED) Certification. They are listed below:
| Certification Level | Description |
|---|---|
Bronze |
Indicates that the enterprise has adopted basic quality, safety, and environmental standards. |
Silver |
Reflects consistent improvement in energy efficiency, waste management, and production practices. |
Gold |
Represents advanced excellence in quality, sustainability, and zero-effect operations. This is the highest level of certification. |
The eligibility criteria are as follows:
The applicant must be a registered micro, small, or medium enterprise with a valid Udyam Registration.
Both manufacturing and service sector MSMEs are eligible.
MSMEs not enrolled in the UDYAM registration portal.
| Document Type | Purpose |
|---|---|
Udyam Registration Certificate |
Proof of MSME registration |
Valid email ID and mobile number |
For verification and communication of credentials and information |
Before you apply for MSME Sustainable (ZED) Certification Scheme, make sure that your enterprise is enrolled under Udyam. Once confirmed, you can follow these steps:
Visit the official portal at https://zed.msme.gov.in/.
On the homepage, click on the “Register Now” button representing “ZED Certification (For MSMEs)” under the “Our Initiatives” section.
If you have already received your log in credentials, use your ZED ID and password to log in.
Alternatively, if you are enrolling for the first time, click on the “Register Now” button under the “New User” section.
You will need to verify your log in using your Udyam Registration Number and OTP.
After logging in, fill in the required details related to production, safety, and environmental practices.
Upload the required documents as prescribed.
Select the desired certification level from Bronze, Silver, and Gold based on current compliance readiness.
Make applicable payments as per the chosen certification level.
The submission will be reviewed and an assessment will be conducted with on-site and digital verifications.
Once verified, the ZED certificate is issued to the MSME and remains valid for a specified period.
| Scheme Name | Objective |
|---|---|
Lean Manufacturing Competitiveness Scheme (LMCS) |
Helps MSMEs improve efficiency and reduce production waste. |
Design Clinic Scheme for MSMEs |
Promotes innovation through professional design intervention. |
Digital MSME Scheme |
Supports digital adoption and automation for MSMEs. |
Credit Linked Capital Subsidy Scheme (CLCSS) |
Provides financial support for technology upgradation. |
National Manufacturing Competitiveness Programme (NMCP) |
Enhances productivity and quality across small enterprises. |
The MSME Sustainable (ZED) Certification Scheme helps small and medium enterprises move toward cleaner and more efficient production. It promotes the “Make in India” vision while aligning with environmental and quality standards.
MSMEs can also explore business loan options on Bajaj Markets to finance technology upgrades, process improvements, or certification expenses, further strengthening their competitiveness and growth.
Eligible MSMEs must register on the ZED portal, complete self-assessment, and undergo verification to receive ZED certification.
The government provides up to 80% subsidy on certification costs for micro enterprises, 60% for small enterprises, and 50% for medium enterprises. Additional incentives are available for women-owned and SC/ST units. MSMEs which are part of SFURTI or MSE-CDP are eligible for an extra 5% subsidy.
No, it is voluntary. The certification encourages MSMEs to follow sustainable and responsible manufacturing practices.
No, ZED certification complements other quality and compliance certifications but does not replace statutory requirements.
The scheme covers awareness programmes, training, capacity building, self-assessment, certification, and financial assistance for implementation.
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