Overview of Proposed National Industrial Classification (NIC) Framework Revision

The NIC framework in India is undergoing significant revision for the first time since 2008 to reflect contemporary economic activities and align with the International Standard Industrial Classification (ISIC) of the United Nations.

Key Changes and Additions

• The NIC will now include activities such as: 
  • Nail salons and dating services (both online and offline).
  • Slandering salons and temporary tattoo art.
  • Organizing bachelor and bachelorette parties.
  • Growing crops like Ashwagandha, Isabgol, and Christmas trees.
  • Raising equines such as ponies, donkeys, and mules.
• Alcohol manufacturing will be subdivided into categories like vodka, rum, brandy, gin, and whisky.
• Inclusion of modern technological services: 
  • Installation of electric vehicle chargers and solar systems.
  • Operation of online food delivery platforms.
  • Streaming services on OTT platforms.
  • Digital tutorials and specialized exam prep courses.
  • Development of AI and machine learning applications, along with cybersecurity programs.

Implications and Importance

• The revised NIC framework will facilitate better economic analysis and policy-making by capturing new and emerging industries.
• It will support international and interregional comparability of economic data.
• More granular data on agricultural and industrial activities will help devise effective policy interventions, such as anti-inflation measures.

Expert Opinions and Considerations

• PC Mohanan emphasizes the importance of updating codes to reflect socio-economic changes.
• Ashish Kumar stresses the need for concordance with previous codes to maintain trend analysis consistency and inclusion of future-oriented economic activities like gig work and digital technology.

Historical Context

The first classification of economic activities in India was made in 1962, with subsequent updates in 1970, 1987, 1998, 2004, and 2008.