What is NIC Code? – A Complete Analysis

NIC Code or National Industrial Classification Code is a vital Statistical Standard for maintaining & developing comparable databases as per economic activities. These classifications are repeatedly used in classifying the economically active population, statistics of industrial production & distribution, the various fields of labor statistics & other economic data like national income. Comparability of statistics available from various sources, on different aspects of the economy & usability of such data for economic analysis are essential for standardisation of a classification system. Activities are grouped into Sections alphabetically coded from A to U and every Section is divided into Divisions with 2-digital numeric codes, every Division into Groups with 3-digit numeric codes, every group into Class with 4 digit code, and every 4-digit class into 5-digit Sub-Class.

On 26th June 2014, the Department of Policy & Promotion had decided to switch over to NIC 2008 from NIC 1987. Version. Since then, all Indian Companies have been advised to follow NIC-2008. NIC 2008 is more compatible & well-suited for the International System of Classification and this enables the compliance processes for Registration to follow in a smooth manner.

What is the Importance of the NIC Code in India?