prpri Zed Certification for MSMEs in Export Business (Zero Effect Zero Defect Registration) Zed Certification for MSMEs in Export Business (Zero Effect Zero Defect Registration)

Background & Benefits

The ZED Certification will focus on MSMEs and small businesses.

It will address the quality and ecological needs of domestic and overseas customers, society, employees, partners, regulators, and investors.


To enable the advancement of Indian industry to a position of eminence in the global marketplace and leverage India’s emergence as the world’s supplier through the ‘Made in India’ mark.


To develop and implement a ‘ZED’ culture in India based on the principles of:

Zero Defect (focus on customer)

  • Zero non-conformance/non-compliance
  • Zero waste

Zero Effect (focus on society)

  • Zero air pollution/liquid discharge (ZLD)/solid waste
  • Zero wastage of natural resources


For registered MSMEs in manufacturing Sector only.

Flow of Process under ZED Certification Initiative for Manufacturing Unit

1. Zero Government Fees Online Registration

2. Online Self Assessment:

 The major benefit of undertaking this process is a comprehensive understanding of the ZED Maturity Assessment Model, its intent and the process flow. It is also expected to enhance involvement of the applicant MSME in the process of assessing its strengths and identifying areas that need improvement. A maximum of three attempts will be permissible per applicant.

The 50 parameters based self -assessment is to be done including 20 Mandatory parameters and 30 industry specific parameters.

3. Desktop Assessment:

The Desktop Assessment process will evaluate the online self-assessment exercise undertaken by the applicant MSME.

This process is in 3 stages:

First, payment of relevant fee (Rs. 10,000/-) by the applicant MSME.


The financial Support  (Subsidy) available for first 22,222/- MSMEs for desktop assessments only.

The Concessional Amount for desktop assessment is categorized as under:

  • For Micro Enterprises: INR 2,000/-
  • For Small Enterprises: INR 4,000/-
  • For Medium Enterprises: INR 5,000/-

Second, submission of relevant evidences as advised in the self-assessment stage.

Third, evaluation (by the desktop assessor) of the self-assessment vis-à-vis evidences submitted.

The outcome of this process will decide the onward movement of the applicant in the ZED Certification scheme. The applicant MSME will be advised to proceed to the site-assessment stage if cleared after the desktop assessment and a brief report will be forwarded. If the applicant MSME is not advised to proceed further, a detailed report with a roadmap for improvement will be provided to the applicant MSME. 


The Site Assessment process is a comprehensive physical assessment & evaluation of the existing systems and processes of the applicant MSME.

The process will take about 4 man-days and will be conducted by trained and qualified assessors from accredited rating agencies.

Typically, 2 assessors will participate in this process and assess/evaluate the existing systems and processes of the manufacturing unit on the parameters selected during the online self-assessment stage and collect additional relevant evidences as applicable.

An amount of Rs. 80,000/- will be payable by the applicant MSME for this process. This cost also includes the Certification fee.


The financial Support (Subsidy) available for first 22,222/-  MSMEs for Site Assessments only.

The Concessional Amount for Site Assessment is categorized as under:

  • For Micro Enterprises: INR 16,000/-
  • For Small Enterprises: INR 32,000/-
  • For Medium Enterprises: INR 40,000/-


After the assessments and evaluation, the final rating is provided to the MSME which is valid for a period of 4 years.

In order to prepare the MSMEs to create a value chain for the new regime, it is important that quality and competitiveness of Indian MSME is enhanced over a period of time. It will also provide an opportunity to units to strive to continuously improve its processes thereby aiming to move up the maturity assessment model (Bronze-Silver-Gold-Diamond-Platinum).

The rating is a weightage average of the marks obtained on each parameter.

The rating provided will be valid for a period of 4 years. Surveillance audit will be carried out by Quality Council of India.

Disclaimer: The Information provided is best to the knowledge  and understanding of the author as on date.The Author is not liable for any loss, damage or inconvenience caused as a result of reliance on such information .

(The author is Practising Company Secretary and can be reached at 8375877464 or E-mail :


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August 2021