The impact of ZED extends beyond certification as 22 states or UTs have integrated ZED into their industrial policies and are offering additional incentives to certified MSME.

Further, 19 financial institutions are extending benefits such as concessions in processing fees and interest rates, making it easier for ZED-certified enterprises to access finance.

Among MSMEs registered under the scheme, 6.67 lakh were awarded Bronze, 6,700 Silver and 4,800 Gold certifications.

The ministry highlighted that 100 per cent subsidy on ZED Certification for women-owned MSMEs, removes the cost barrier and encourages greater participation of women entrepreneurs.

The ZED scheme helped MSME strengthen their competitiveness, enhance market credibility and integrate more effectively into domestic and global value chains by promoting quality manufacturing, resource efficiency and environmental sustainability.

The Ministry of Micro, Small and Medium Enterprises is promoting quality-driven and environmentally responsible manufacturing through the MSME Sustainable – ZED Certification Scheme.

The initiative supports MSME in improving production processes, adopting better quality standards and reducing their environmental footprint, thereby strengthening their competitiveness in domestic and global markets.

The Zero Defect Zero Effect (ZED) initiative encourages MSME to manufacture high-quality products while minimizing their environmental impact. It supports enterprises in continuously improving their technology, systems and manufacturing practices to enhance quality, productivity and sustainability.

Eligible MSME can also avail financial assistance of up to 75 per cent of the cost of testing or system or product certification (maximum Rs 50,000), up to Rs 2 lakh for handholding and consultancy support, and up to Rs 3 lakh for adopting Zero Effect solutions, pollution-control measures and cleaner technologies.