About National Industrial Classification 2025 (NIC-2025):
- The NIC is the standardized system used to classify all economic activities in India for statistical surveys, censuses (like the Annual Survey of Industries), and national accounts (GDP calculation).
- First introduced in 1962, it has been revised periodically in line with international standards and the changing economic landscape, leading to NIC 1970, NIC 1987, NIC 1990, NIC 1998, NIC 2004, and NIC 2008.
- The NIC 2025 represents the latest updated national standard for classifying economic activities in India.
- The NIC 2025 has been prepared by the MoSPI in alignment with the International Standard Industrial Classification of All Economic Activities (ISIC) Revision 5, developed by the United Nations Statistics Division (UNSD).
- The revision was carried out under the guidance of the Expert Committee for Revision of Economic Classifications (ECREC).
- Major Changes:
- The NIC 2025 introduces a new 6-digit coding structure, in place of the 5-digit structure of NIC 2008.
- The shift to a 6-digit structure matters because it provides the granularity needed to distinguish specific modern activities (e.g., distinguishing “fintech” from general financial services), enabling more precise measurement of the digital and green economies.
- The Salient Feature of NIC 2025 are:
- Enhanced Classification of Intermediation Services: New classes have been created across multiple sections to reflect the growing role of intermediaries in sectors such as power, retail, logistics, healthcare, education, real estate, and food services.
- Environmental and Green Economy Integration: Expanded coverage of carbon capture, waste management, and environmental remediation activities, with better alignment to SDGs and SEEA framework.
- Digital Economy Representation: Cloud infrastructure, blockchain, platform-based services, and web search portals are distinctly classified, reflecting the evolving nature of the digital economy.
- Classification is technology agnostic: In general, distinction of activities is not made based on whether an activity is carried out by means of traditional or modern production techniques.
- The NIC 2025 will serve as a vital statistical standard for compiling and analysing economic indicators across sectors.
- The classification will also assist in accurately identifying and reporting economic activities in a consistent and comparable manner.
