Govt brings sunrise sectors under NIC codes

Such classifications are frequently used in classifying the economically active population, statistics of industrial production and distribution, the different fields of labor statistics, and other economic data such as national income, says govt

Horizons of Growth

- Indian drone industry valued at $830 mn in FY 2020

- It's estimated to grow CAGR of 14.5% during 2021-2026

- Co-firing of biomass like agri stubble along with coal in thermal power plants to generate electricity

- Biomass pellets are a way out

- Portable petrol pumps are also new concept

New Delhi: In a bid to make data from new industries like drone manufacturing, portable petrol pump, portable service stations, and biomass pellet manufacturing, the Ministry of Statistics & Programme Implementation (MoSPI) has brought them under National Industrial Classification (NIC) codes.

The NIC is an essential statistical standard for developing and maintaining a comparable database according to economic activities, says a government website. "Such classifications are frequently used in classifying the economically active population, statistics of industrial production and distribution, the different fields of labor statistics, and other economic data such as national income."

Comparability of statistics available from various sources, on different aspects of the economy, and usability of such data for economic analysis, are prerequisite for standardization of a system of classification, it adds.

Stakeholders in the new industries like drone manufacturing and portable petrol pumps have been urging the government to be provided NIC codes, official sources told Bizz Buzz.

The MoSPI has recommended NIC code 26515 for drone manufacturing, 47300 for portable petrol pumps and portable service stations, and 38300 for biomass pellet manufacturing. Technical textile (packtech), covered under the NIC code 13999.

The Indian drone industry was valued at $830 million in FY20 and is estimated to expand at a CAGR of 14.5 per cent between 2021 and 2026, according to government estimates. Drone technology is increasingly being adopted across industries in India and abroad. Drones reduce compliance costs, enable real-time monitoring, facilitate high-quality data collection, and help monitor large areas in less time. These advantages are driving their adoption for civil and industrial applications, sources said.

The burning of agro-residue or stubble by farmers after crop is harvested has been one of the reasons for environmental pollution having adverse health impacts. Co-firing of biomass along with coal in coal-based thermal power plants to produce electricity is an efficient way of utilizing the agro residue and avoiding the environmental pollution, at the same time generating extra revenue to the farmers by sale of agro residue as raw material input to the pellets manufacturer, says a report by the Central Electricity Authority.

Biomass pellets are a way out. Raw agro-residue needs to be densified and processed to form pellets. This is the reason that this industry has come into being. Portable petrol pumps are also new. The government recognized them in 2018.