Source: BS
Context:
The government is preparing an update to the National Industrial Classification (NIC-2025), a standardised system maintained by the National Statistics Office (NSO). The revision aims to better capture new-age sectors like digital services, gig economy, and green industries, ensuring India’s economic data remains accurate and internationally comparable.
Background:
- Industrial classification first introduced in 1962, updated in 1970, 1987, 1998, 2004, and 2008.
- NIC codes are used in national accounts, surveys, investment data, and policymaking.
- With the rise of OTT platforms, EV charging, AI, and gig work, the existing 2008 codes risk becoming outdated.
Key Highlights of NIC-2025 Draft:
- Recognition of new sectors – OTT platforms, EV charging stations, AI, circular economy, and green jobs explicitly included.
- Better representation of gig economy – NITI Aayog estimates gig workforce to grow from 7.7 million (2020-21) to 23.5 million (2029-30).
- Policy relevance – Updated codes ensure policymakers capture where jobs and investments are flowing.
- Global alignment – NIC-2025 to align with International Standard Industrial Classification (ISIC), improving comparability and investor confidence.
- Use of digital data – Integration of GST filings and other digital platforms for more accurate classification.
- Continuity challenge – Need for concordance tables to match old and new codes, ensuring comparability with past datasets.
