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What Is The National Industrial Classification Code (NIC)?

calendar09 Mar, 2023
timeReading Time: 5 Minutes
What Is The National Industrial Classification Code (NIC)?

In India, there is a significant history of industrial classification. It is frequently used in business surveys, censuses, and estimates of national income, labor statistics, and other areas. In the early years, a variety of industrial classifications were used by organizations tasked with gathering statistical data. As a result, there was a pressing need for India to create a standard industrial classification that numerous enterprises could adopt. The Central Statistical Organization (CSO) was tasked with creating a national industry categorization at the beginning of the 1960s.  Also, based on the recommendations it got from several Government of India departments and agencies. The National Employment Service, the Registrar General, the Economic Advisors to the Ministries of Finance, Food & Agriculture, Commerce, and Industry, the Planning Commission, the India Bureau of Mines, the Labor Bureau, the National Sample Survey, and the Indian Statistical Institute are among the organizations that make up this group.  In response to the requirements, the CSO created a national Strategic Industrial Classification called Standard Industrial Classification (SIC), which was completed and published in 1962. In this blog, we will discuss about National Industrial Classification Code (NIC Code).

About National Industrial Classification Code

The government provides the National Industrial Classification Code, which is a classification system or type of company code. Also, this code aids in monitoring the operations of micro, small, and medium-sized firms. Also, the National Industrial Classification Code is given out in order to precisely and methodically track the business operations of organizations. The whole form of the National Industrial Classification Code in the Indian market reflects its behavior and preferences.

In addition to serving as the basis for Indian Industrial Statistics, NIC is widely used by government entities, business associations, and academics for a variety of administrative, analytical, and research goals. Simply expressed, the purpose of this code was to investigate and quantify the connection between each economic activity and the level of national wealth. 

The Directorate of Policy and Promotion of the United National Statistical Commission updated NIC 1987 to become NIC 2008. All Indian businesses are particularly required by the government to abide by the 2008 NIC rules.

The NIC 2008 is more compatible with the global system. It makes it possible for enrollment enforcement procedures to go smoothly. A framework for the consistent gathering, analysis, and dissemination of industry-specific economic data in India is to be established by the National Industrial Classification of 2008.

Where is NIC Used?

The list of two segments where the NIC (National Industrial Classification) is utilized is provided below.

  • Register for Udyam: To apply for registration as a micro, small, or medium-sized business, you must go to the Udyam portal. The Micro, Small, and Medium Enterprise Development Act governs it (2006). Furthermore, when registering on the Udhyam site, you need to enter your NIC code.
  • LLP And Company Formation: Forming a corporation or limited liability partnership (LLP) requires registration on the Ministry of Corporate Affairs (MCA)[1] Portal. Moreover, the NIC code of the business is necessary for registration.

Importance of the National Industrial Classification Code

The relevance of the National Industrial Classification Code is indicated by the following list of significant points.

  • Most Indian government departments utilize it to ensure that businesses are categorized properly. It’s also utilized to keep track of a company’s business activity.
  • To get an Udyog Aadhaar to register a company or a limited liability partnership (LLP).
  • After your business has registered with the NIC, you may conveniently access all government benefits.
  • In order for the government to keep track of your business, make sure to note that you have registered for NIC on all of your invoices.

Method to Generate Udyog Aadhaar NIC Code

All of these micro, small, and medium-sized businesses need an Udyog Aadhaar in order to launch their business.

This twelve-digit special identification number is issued by the Indian government’s Ministry of Micro, Small, and Medium Businesses. Yet, different kinds of organizations are given this particular identifying number. Keep in mind that registering for Udyog Aadhaar is totally free. 

Now let’s also understand more about Udyog Aadhaar. Do the following steps:

  • You’ll see that the Udyog Aadhaar form is separated into numerical sections when you fill it out. For instance, Section 10 mandates that Significant Activity and Section 9 bank data be completed, among other things.
  • Complete the NIC code list’s 11 number fields. Do a quick NIC code check by entering some terms into the search field to finish the code. Textiles made of cotton, for instance, and more. 
  • A different method of entering a NIC code is to choose a business operation first. It could involve service or manufacture.
  • A two-digit NIC code, a four-digit code, and a five-digit code must then be entered.  
  • You can still amend or correct a wrong NIC code in Udyog Aadhaar and generate the acknowledgment even if you entered it incorrectly earlier.
  • You can use the search bar to look for the National Industrial Classification code. The NIC code list is also available for download in PDF format.

Method of NIC Code to Apply For MSME Registration

A definition of MSME is provided by the Micro Small and Medium Enterprise Development Act of 2006 and is split into two categories:

  • Manufacturing Enterprises: Businesses involved in production or manufacturing. Additionally, it is as described in the first schedule of the Industrial Development and Regulation Act (1951), or in the construction of factories and equipment to raise the caliber of finished products.
  • Service Enterprises: Service enterprises are companies that work in the servicing sector.

Also, in order to register an MSME under the Udyog Aadhaar program, NIC is required. Also, you must submit a few crucial documents. It contains the entrepreneur’s NIC code, phone number, postal address, bank information, company name, mission statement, and MSME Unit operations.

Yet, the National Industrial Classification Code in MSME is a technique of categorization that enables MSMEs to be categorized in accordance with their commercial activities.

The Following Steps Should Be Followed To Fill Out The MSME NIC Code:

  • You have the option of manually filling in the code or conducting a quick NIC code search using a keyword.
  • The alternative is to select a company activity, such as manufacturing or service, and then input two-, four-, and five-digit NIC codes for that activity.
  • If you enter an incorrect National Industrial Classification Code after making a mistake. The acknowledgment can then be readily created in Udyog Aadhaar and corrected or updated.
  • It is necessary to enter the National Industrial Classification code from the manual. 
  • Applicants could choose more than one National Industrial Classification Code-2008 to account for all of their business activities.

Who Is Responsible For The Code Preparation?

The National Industrial Classification in India was created by the national statistical organization of India.

The first design was NIC-62, which was followed by NIC-70, NIC-87, NIC-98, and NIC-2004. However, the new and most recent NIC, NIC-2008, the new industrial classification, has been created and published by the national standards organization (NSO), and enterprises must follow it.

Some NIC Codes

The following companies utilize the National Industrial Classification Codes listed below: 

1. Swine and pig farming: 0145

2. Retail sales of medical, orthopedic, and pharmaceutical products: 47721 

3. Parts and accessories for motor vehicles: 45300 

4. 55101 Hotels and Dining 

5. Making things out of cement and plaster: 2395 

6. Pharmaceutical and medical wholesale: 46497 

7. Manufacturing of wool and wool-blend fabrics through weaving: 13123 

8. Production of chemicals used in the production of textiles, paper, leather, and similar products: 20297 


The government offers the National Industrial Classification Code as a form of business code to help firms classified as micro, small, and medium enterprises keep track of their commercial transactions. The NIC code is given in order to carefully and exactly track the commercial activities of the firms. The National Industrial Classification Code has been shown to be essential for various commercial transactions in the MSME sector. To aid the entrepreneurs who are the backbone of the Indian economy, the government has already announced a number of programs in this area.

Also Read:
What Is The Difference Between MSME And NSIC Registration?
How To Register Your Limited Liability Partnership Firm In India?
MSME Udyam Registration Portal: Everything You Need To Know

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