DEVISING A PROPER CLASSIFICATION OF SERVICES

Current Status 7.2.1 In India, a wide variety of industrial classifications, including services, have been used by various organisations entrusted with the task of collection of statistical data in various censuses, surveys, etc. The need to evolve a common industrial classification for the use by different agencies was felt to be extremely important. Accordingly, the CSO took up the task of evolving an industrial classification as early as 1960 and evolved a Standard Industrial Classification (SIC) in 1962. 7.2.2 To incorporate the significant changes in the organisation and structure of industries taking place over a period of time, the necessity to periodically revise the industrial classification has often been felt. With this objective, the CSO revised SIC 1962 in 1970 and accordingly brought out the National Industrial Classification (NIC-70). This was subsequently revised in 1987 (NIC-87), which was further revised in 1998 (NIC-98). 7.2.3 All the industrial classifications developed by the CSO broadly accepted the major features of the International Standard Industrial Classifications (ISIC), with further extension of codes at the ultimate digit level. This was done to give due recognition to the special features of the Indian economy and also to meet the emerging requirements of user organisations. 7.2.4 The NIC-98, which followed the principles of the ISIC-1990 (Revision 3), is a classification of all economic activities, including services, undertaken by the economic units. The NIC-98 codes extend up to the 5-digit level. Total number of such 5-digit codes in NIC-98 is 1021 (see Annexe 7.1 for details). 7.2.5 The NIC classification of the CSO has found wide use in the country. These classifications are used by various divisions of the MoS&PI for carrying out Economic Censuses and sample surveys, for releasing national accounts statistics as well as for other purposes. Further, other important organisations outside the Ministry, like the offices of the Registrar General and Census Commissioner, India and the Development Commissioner, Small Scale Industries have also found significant use of the NIC classification. The adoption of the NIC by the important organisations mentioned above gives ample scope for cross-examining alternative data sets by industrial categories as available from different sources. Trade (b) Hotels and restaurants

(c) (d) (e) (f) (g)

Transport including tourist assistance activities as well as activities of travel agencies and tour operators Storage and communication Banking and insurance Real estate and ownership of dwellings Business services including accounting; software development; data processing services; business and management consultancy; architectural, engineering and other technical consultancy; advertisement and other business services Public administration and defence Other services including education, medical and health, religious and other community services, legal services, recreation and entertainment services

(h) (i)