Get Subsidy Up to 80% From Zero Defect Zero Effect Scheme


The Zero Defect Zero Effect (ZED) Certification Scheme is launched by The Ministry of Micro, Small, and Medium Enterprises (MSME) in April 2022. The focus of the scheme is to empower Indian companies, make them globally competitive, and enable easy access to capital.

As per the MSME minister Narayan Rane, the Zero Defect Zero Effect Scheme is exclusively curated to transform the mindset of Indian manufacturers and make them environmentally more conscious. Read the complete blog to know how to get subsidy up to 80% from the Zero Defect Zero Effect scheme.

The Objectives of Zero Defect Zero Effect Scheme

The scheme takes an all-out approach to sync MSMEs with the salient features and benefits that eventually help them reduce wastage significantly, boost productivity, conserve energy, make optimal use of natural resources, enhance environmental consciousness, and expand market reach among others. In other words, the ZED Scheme is set to become a national movement that will put Indian MSMEs on the global map in the manufacturing domain.

Benefits of ZED Scheme

Financial Assistance from Zero Defect Zero Effect Scheme

Zero Defect Zero Effect scheme is an exclusive scheme offering a subsidy of:

  • 80% for micro-enterprises
  • 60% for small enterprises
  • 50% for medium enterprises
  • 10% additional subsidy for women and SC/ST-owned enterprises, and MSMEs in Himalayan, LWE, NER, Island territories, and aspirational districts
  • Additional 5% subsidy to MSMEs belonging to the SFURTI or Micro & Small Enterprises – Cluster Development Program of the Ministry

Eligibility Criteria to Apply for ZED Scheme

Applications for the ZED program are accepted from all Micro, Small, and Medium-Sized Enterprises that have registered with the Ministry of MSME, DIC (EM-II), other governmental organizations or business associations.

Components of Zero Defect Zero Effect Scheme

The Zero Defect Zero Effect scheme includes the following critical components:

1. Industry Awareness Programs/Workshops

With the help of stakeholders like industry associations, implementing agencies, MSME-DIs, District Industries Centers (DICs), large enterprises/OEMs, and BEE, MSMEs will be made aware of the ZED Certification through nationwide awareness programs

2. Training Programs 

In order to facilitate an efficient implementation by partners like QCI, BIS, and NPC, stakeholders including MSME Officers, assessors, and consultants will receive comprehensive training

3. Assessment & Certification 

After meeting the requirements for the Certification Level, they have applied for, MSMEs will be evaluated on various grounds and awarded that Certification Level.

4. Handholding

MSMEs will receive assistance to move toward higher certification levels, including technology advancement adopting pollution control measures, cleaner technology, and zero effect solutions.

5. Benefits/Incentives

Subsidies and Schemes encourage MSMEs scale the certification levels. It can include taking stringent measures to prepare for and respond to the pandemic.

6. PR campaign, advertising, and brand promotion

A nationwide publicity campaign will be conducted to promote ZED and the MSME Sustainable (ZED) Certification.

7. Digital Platform

The MSME Sustainable (ZED) Certification process will be electronic and require the least amount of paper possible thanks to a single window digital platform.


ZED Certifications 

The ZED certification can be obtained under three following levels after taking the pledge:

  • Certification Level 1: BRONZE
  • Certification Level 2: SILVER
  • Certification Level 3: GOLD

Guidelines to get subsidy from Zero Defect Zero Effect scheme

There’s a streamlined process all MSMEs seeking subsidy from the ZED Scheme have to follow.

  1)     An MSME can apply online for any Certification Level after taking the ZED Pledge and meeting all of the level’s requirements.

  2)     If there is a nonconformity, the applicant MSME will have a chance to fix it within a certain amount of time in order to qualify for the desired level or certification.

  3)     The Accredited Assessment Agencies’ conclusions and recommendations will serve as the foundation for the Final ZED Certificate.

How is the Manufacturing Industry Growing in India?

India is on the path to becoming a significant global manufacturing hub and has the capacity to export goods worth $1 trillion by 2030. The manufacturing sector contributes significantly to the Indian economy, accounting for over 27.3 million jobs and 17% of the GDP. The Indian government intends for manufacturing to account for 25% of the nation’s economic output by 2025.

Due to factors like increased access to electricity, long-term employment opportunities, a young, educated population, and skill pathways for millions of people, India has a significant capacity to participate in international markets. India is well-positioned to profit from its resources, industrial know-how, and entrepreneurial spirit.

The manufacturing industry in India is rapidly moving toward more automated and process-driven manufacturing, which is expected to increase productivity and efficiency.

Are You Interested To Get Subsidy From Zero Defect Zero Effect Scheme?

If you are having a manufacturing industry and looking to get subsidy from the ZED scheme, connect with SolutionBuggy and get assistance. Our subsidy consultants provide detailed project reports and checklists to get subsidies for your manufacturing industry. DPR is mandatory to get any type of subsidy and also it contains important information on the financial, technical, and implementation aspects of the project.

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