1. Cross classifying NIC70 to NIC87.
The data for 1986-87 have industry classification based on NIC70. The data thereafter use the NIC87 classification. A note on the 1998 revision in classification states the following:
The CSO finalised in 1987 the revision of the NIC 1970 within the ambit of ISIC 1968 Rev. 2, as there had been no corresponding revision in industrial classification in the international scenario. At the one digit level there had not been any major changes in the NIC 1987 as compared to the NIC 1970 and the economy remained divided into 9 sections and the special section X “Activities not Adequately Defined”. The activities relating to Repair Services, which were provided for in two places viz. Division Y and 9 (major group 97) of NIC 1970, had been placed only at Division 97 of NIC 1987, thereby dropping the special Division Y in the revised NIC. At the two digit level there had beenan expansion of 8 divisions bringing it to 72 divisions as against 64 in NIC 1970. Of the eight additional two digit codes, three were in Mining and Quarrying Section, with one each in Manufacturing (Repair of Capital goods) and Electricity(Generation of non-conventional energy) Sections and the remaining three in the Section relating to Finance, Insurance, Real Estate and Business Services. Similarly, the three digit level categories were also increased to meet the requirement of more detailed activities which had become important in the intervening period. Finally, in order to differentiate the scale and/or technologies of operation and also to take into account the product specialisation, four digit classification appeared through out in NIC-1987; unlike in case of NIC-1970 where four digit classification was developed only for the sections dealing with mining and manufacturing. There was an expansion at the 3-digit level making a total of 461 as compared to 383 in NIC 1970. The number of four digit level categories in NIC 1987 was 918 as against 590 in NIC 1970.
Some more details on the revision process are available in the document c:\indmfg\comment_other\nic_1998_intro.pdf.
We do the cross-classification based on the fact that for the years 1987-88 and 1988-89, both the NIC70 and NIC87 classifications are reported. Using the data for the year 1987-88, for each NIC70 code we choose the corresponding NIC87 code as that which has appeared most frequently against the NIC70 code in the dataset. For eg if 3112 in NIC70 has been listed against 3115 four times and against 3116 five times, we choose 3116 as NIC87 code corresponding to 3112 under the NIC70 scheme. This is done in the program c:\indmfg\dofiles\cross_nic87_nic70.do.
2. Cross classifying 3 digit NIC to the classification of wholesale price data in the Statistical Abstract.
The statistical abstract price data classification appears to be based on the NIC 87. However, the data on prices is provided at generally a slightly aggregated level compared to 3 digit NIC.
The cross classification was carried out with three guiding principles:
· Match the classifications as closely as possible: In many cases an exact match was possible. In the many cases where the pricing data was too aggregated, we used the closest aggregate (rather than an overall aggregate). For eg in case of NIC223Manufacture of country liquor, no exact pricing data was available. We used the data on Manufacture of Malt Liquor rather than the price data for the whole category (Beverages, Tobacco and Tobacco products) as we considered this the closest match.
· Use as fine data available on prices as possible: To do this, in some cases (Chemicals (NIC 300), Fertilizers & Pesticides (NIC 301), Toiletries etc (NIC 305), Cement (NIC 324)) we had to use the 4-digit NIC to match the price data to the closest classification on the NIC scheme. One exception was Tyres & Tubes (NIC310) (which has pricing data on tyres and tubes separately), since all the NIC sub-classifications had both tyres and tubes appearing together.
· Where no data is available, use overall wholesale price index: Eg, for Repair Services (NIC 390 – NIC 399), Electricity, gas.
3. Cross classifying 3 digit NIC to the ISIC classification
The note nic_1998_intro.pdf suggests that the NIC87 was designed so that the 3 digit NIC code exactly matches the ISIC Rev 2 4 digit scheme. We try to replicate a cross-classification by matching the codes as closely as possible. In most cases an exact match was possible. The NIC87 appears to have additionally a few local products eg Zarda, Bidi, embroidery, country liquor (Arrack and Toddy), etc, which do not exactly match up. These were included in the “not elsewhere classified” (nec) category or under the closest match.
4. Cross classifying 3 digit NIC to the classification of wholesale price data in the Statistical Abstract.
The detailed wholesale price data from the Office of the Economic Advisor, is at a greater level of detail than the statistical abstract. While the latter has about 114 lines of price data (including group and subgroups), the OEA provides data at the level of individual commodities. The series with 1981-82 as the base year, introduced in July, 1989 covered 447 commodities using 2371 price quotations from various sources. The revised series (1993-94) has 435 items for which there are 1918 quotations.
However, the classification of data on prices, while broadly based on the NIC, defines items based on end-use rather than based on the manufacturing process. For example, while the detailed NIC has separate entries for weaving and finishing of wool in handlooms as well as powerlooms, the price data classifies wool based on end-use as woolen yarn, woolen cloth, etc. Further, the NIC 4 digit classification has about 849 lines, and thus is more detailed than the price data. This is compounded by the fact that some of the available price data do not have corresponding entries in the NIC 4 digit classification. For example, there are separate entries for Nylon, Polyester and acrylic yarn in the price data, whereas the NIC 4 digit classification has entries for manmad fibres/artificial textiles and does not separate these entries based on the particular yarn.
The cross classification here was carried out with the same guiding principle as in Section 1 above.
5. End-notes
In the NIC 4digit classification provided, the following entries appear erroneous, as they do not belong under these three digit codes.
311;MANUFACTURE OF FOOTWEAR MADE PRIMARILY OF VULCANISED ORMOULDED RUBBER AND PLASTICS
3113;MANUFACTURE OF MIXED FERTILIZERS
3114;MANUFACTURE OF PESTICIDES (INSECTICIDE FUNGICIDES AND WEEDICIDES)
3115;MANUFACTURE OF PESTICIDES FORMULATIONS
3119;MANUFACTURE OF OTHERS
312;MANUFACTURE OF RUBBER PRODUCTS
3120;MANUFACTURE OF PAINTS, VARNISHES AND LACQUERS
3121;MANUFACTURE OF PAINTS, VARNISHES, LACQURES ETC.
3122;MANUFACTURE OF DYE-STUFFS
3123;MANUFACTURE OF INDIGO
3124;MANUFACTURE OF WAXES AND POLISHES
3129;MANUFACTURE OF OTHERS
The correct entries for these appear to be:
301;MANUFACTURE OF FERTILIZERS AND PESTICIDES
3013;MANUFACTURE OF MIXED, COMPOUND OR COMPLEX FERTILILZERS
3014;MANUFACTURE OF PESTICIDES (INSECTICIDES, FUNGICIDES AND WEEDICIDES)
3019;MANUFACTURE OF OTHER FERTILIZERS AND PESTICIDES NEC
303;MANUFACTURE OF paints, varnishes, and related products, artists' colours and ink
3032;MANUFACTURE OF PAINTS, VARNISHES, ENAMELS OR LACQUERS
3033;MANUFACTURE OF DYES
3034;MANUFACTURE OF WAXES AND POLISHES
3035;MANUFACTURE OF PRINTING, WRITING OR DRAWING INK
3039;MANUFACTURE OF OTHER PLAINTS, VARNISHES AND RELATED PRODUCTS NEC
3005; MANUFACTURE OF TANNING OR DYING EXTRACTS: TANNINGS AND THEIR DERIVATIVES AND COLOURING MATTER NEC (MANUFACTURE OF INDIGO IS INCLUDED)