Tuesday, 14 January 2014

International Standard Industrial Classification

The System of National Accounts (SNA) provides an international standard for compiling economic activity measures. The productive activities that are accounted for under national income accounts are classified as per the International Standard Industrial Classification of All Economic Activities.

This classification categorizes all economic activities as per a 4 level hierarchical structure. For example


1. Growing of Rice as an economic activity is classified as:

Section A                     Agriculture, forestry and fishing

Division 01                 Crop and animal production

Group 011                     Growing of non-perennial crops

Class 0112                    Growing of rice

2. Retail sale of food in specialized stores is classified as:


Section G         Wholesale and retail trade; repair of motor vehicles
Division 47       Retail trade, except that of motor vehicles and motorcycles
Group    472     Retail of food, beverages and tobacco in specialized stores
Class     4721    Retail sale of food in specialized stores


All the productive activities are classified under 21 sections from Section A to U. 

The classification of economic activities is done on the following parameters:

  • Input of goods and services
  • The process and technology of production
  • Characteristics of output
  • Use to which the output products are put                 

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