Updated industrial classification will help capture new economy data

India's NIC-2025 update to include digital, green, and gig sectors, ensuring accurate economic data, global comparability, and better policy planning

The proposed National Industrial Classification (NIC-2025) update will help improve the monitoring of the Indian economy. Industrial classification was first prepared in 1962, with updates in 1970, 1987, 1998, 2004, and 2008. It is a standardised numerical system developed by the National Statistics Office (NSO) to categorise activities across industries. NIC codes have been instrumental in calculating data on national accounts, statistical surveys, investment flows, and policy formulation. However, as the economy shifts toward digital services, green energy, and gig work, the old classification system could soon become outdated. The 2025 draft promises to correct this lag by explicitly recognising