National Industrial Classification (NIC) in India

What is NIC?

The National Industrial Classification (NIC) is a statistical standard used in India for developing and maintaining a systematic record of economic activities. Introduced by the Central Statistical Organization (CSO) under the Ministry of Statistics and Programme Implementation (MoSPI), it is used across all government departments for statistical and administrative purposes.

It is modeled closely on the International Standard Industrial Classification (ISIC) developed by the United Nations to ensure international comparability of statistical data.

Why is NIC Code Important?

The NIC code holds significance for several reasons:

• Business Registration: Required during company incorporation, partnership registration, and proprietorship establishment.
• Compliance with Government Regulations: Mandated for GST registration, MSME/Udyam registration, and other government licensing.
• Industrial and Economic Planning: Used by the government to classify and analyze data for planning, policy formulation, and budget allocation.
• Sector-Specific Subsidies and Schemes: Identifying the correct NIC code ensures eligibility for industry-specific government benefits and schemes.
• Ease of Doing Business: A standardized classification reduces administrative burden and improves clarity across institutions and states.

Structure and Format of NIC Codes

The NIC follows a five-level hierarchical structure. Each level provides more detailed information about the nature of the economic activity.

Level	Description	Example
Section	Broad category (A to U)	C – Manufacturing
Division	2-digit number	10 – Manufacture of food products
Group	3-digit number	103 – Processing and preserving of fruit and vegetables
Class	4-digit number	1030 – Processing and preserving of fruit and vegetables
Sub-Class	5-digit number	10301 – Canning of fruits and vegetables

This coding system helps authorities pinpoint the precise nature of a business or industrial unit..

Examples of NIC Codes by Sector

Sector	Activity	NIC Code
Agriculture	Growing wheat	01114
Manufacturing	Manufacture of furniture	31009
IT/ITES	Computer programming activities	62011
Education	Primary education	85101
Healthcare	Hospital activities	86100
Retail	Retail sales via e-commerce	47912
Transport	Freight transport by road	49231

Who Uses NIC Codes in India?

• NIC codes are utilized by a wide range of institutions:
• Registrar of Companies (ROC)
• Goods and Services Tax Network (GSTN)
• Ministry of Micro, Small and Medium Enterprises (MSME)
• Directorate General of Foreign Trade (DGFT)
• Employees’ Provident Fund Organization (EPFO)
• Reserve Bank of India (RBI) for sectoral lending classification

Also Read: Benefits of Udyam Registration in 2025

Common Mistakes to Avoid While Selecting NIC Codes

• Choosing a general code instead of a specific subclass.
• Using an outdated version (always use NIC 2008).
• Ignoring secondary business activities, which may affect compliance.
• Selecting codes that don’t align with actual business operations, leading to problems with GST or other registrations.

FAQs on National Industrial Classification (NIC) Code

1. What is an NIC Code?
The NIC Code is a numeric classification code used to categorize businesses and industries based on the nature of their economic activities. It is essential for registrations like GST, Udyam (MSME), and Company Incorporation.

2. Who issues the NIC Code in India?
The NIC Code is developed and maintained by the Ministry of Statistics and Programme Implementation (MoSPI) under the Government of India.

3. Which version of NIC is currently in use?
The latest version in use is NIC 2008, which was last updated in 2017 to include newer and emerging sectors.

4. Why is the NIC Code important for businesses?
It is required for:

• Company registration with the MCA
• GST registration
• MSME/Udyam Registration
• Availing government subsidies
• Participating in tenders and compliance filings

5. Can a business have more than one NIC Code?
Yes. If a business carries out multiple activities, it can have more than one NIC Code. However, the primary activity should be listed first.

6. Is it mandatory to use the NIC Code while registering a business?
Yes. It is mandatory for most statutory registrations, like:

• GST
• Udyam/MSME
• Company Incorporation with MCA
• EPFO/ESIC registrations

7. What happens if I select the wrong NIC Code?
Selecting an incorrect NIC code can:

• Delay registration or approvals
• Causes mismatches during verification
• Lead to ineligibility for certain schemes or benefits

8. Is the NIC Code used in GST registration?
Yes. NIC codes help classify the type of business while registering for GST. It is used in the “Nature of Business Activity” section.

9. Are NIC Codes and HS Codes the same?
No.

• The NIC Code is used to classify economic activity
• HS Code (Harmonized System Code) is used to classify goods for import/export under customs regulations.

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