Context: The Ministry of Statistics and Programme Implementation (MoSPI) released the National Industrial Classification (NIC) 2025 during the ‘Culmination Ceremony’ marking 75 years of the National Sample Survey (NSS). The update represents a major overhaul of India’s economic activity classification system, improving global harmonisation and reflecting the rise of digital, green, and platform-based economic activities.
About the NIC Code
The National Industrial Classification (NIC) is India’s official framework for categorising economic activities based on their primary industrial operation.
It serves as a crucial backbone for:
- National accounts, GDP calculations, and index compilation
- Business registrations, regulatory compliance (MSME, GST, UDYAM)
- Policy formulation, monitoring sectoral trends
- Budget planning and government schemes requiring sector identification
Global Alignment
NIC is aligned with the International Standard Industrial Classification (ISIC) developed by the United Nations Statistics Division, ensuring comparability of Indian economic data with global standards.
Institutional Background
- First introduced: 1962
- Revised multiple times (1970, 1987, 1998, 2004, 2008, 2011)**
- Managed by: National Statistical Office (NSO) under MoSPI
Technology-Agnostic Approach
NIC focuses on “what is produced”, not “how it is produced”.
Example: Handloom vs machine-made cloth—classification depends on the product category, not the production method.
Key Features of NIC 2025
NIC 2025 is the most comprehensive reform since NIC 2008. It responds to India’s changing economic landscape, especially the digital and green transitions.
1. Shift to Six-Digit Classification
- From a 5-digit to a 6-digit coding system
- Expands subclasses to ~1,900, enabling finer sectoral identification
- Useful for GST, MSME registration, economic census, labour surveys
2. Global Harmonisation
- Fully aligned with UN ISIC Revision 5 up to the four-digit level
- Enhances credibility of India’s economic data internationally
3. Recognition of Digital Economy
New categories introduced for:
- Cloud infrastructure & data centres
- Blockchain-based services
- Web portals & digital content platforms
- E-commerce
- Fintech & digital payments
4. Platform & Gig Economy
For the first time, NIC recognises:
- Service aggregators
- Online intermediaries
- Gig work platforms (mobility, delivery, freelance)
This improves labour-market measurement and supports future gig-worker policies.
5. Indigenous Sector Inclusion
- AYUSH healthcare (Ayurveda, Yoga, Unani, Siddha, Homoeopathy)
- Handloom and handicraft activities
These sectors get dedicated codes, boosting visibility for data-driven policy support.
6. Green Economy Classification
NIC 2025 expands coverage of:
- Renewable energy
- Waste management & circular economy
- Environmental services
It aligns with:
- Sustainable Development Goals (SDGs)
- System of Environmental-Economic Accounting (SEEA)