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                 

Standard International Trade Classification

Countries collect data on industrial activity for national income accounting. A record of trade data, in the form of exports and imports, is also maintained. In order to make such data from across the globe comparable, certain rules are adhered to for classification of traded commodities and the economic activities undertaken. Statistics division of United Nation's Department of Economic and Social Affairs has introduced such classifications with the approval of countries from across the world. Revised versions of these classifications have been issued over the years as per requirement.

SITC (Standard International Trade Classification) is a five level classification for segregating different products into specific categories. Revision 4 of this classification was promulgated in 2006. At subsequent levels, products are classified under 10 sections, 67 divisions, 262 groups, 1023 subgroups and 2970 basic headings.

For instance, the code for Peas under this classification is 054.21

This can be explained as follows:

Section                     0   (Food and live animals)
Division                05 (Vegetables and Fruit)
Group                  054 (Vegetables, fresh, chilled, frozen or                  
                                  
simply preserved)

Subgroup             054.2    (leguminous vegetables)
Basic heading        054.21   (Peas)