--- title: NIC code in Udyam for tenders: check it before you bid · TrackTender description: What the NIC code on your Udyam certificate means for MSE tender benefits, what GeM checks, how to add or fix codes, and what to do if a buyer says no. canonical: https://tracktender.com/blog/udyam-nic-code-for-tenders/ source: https://tracktender.com/blog/udyam-nic-code-for-tenders/ --- # NIC code in Udyam for tenders: check it before you bid > What the NIC code on your Udyam certificate means for MSE tender benefits, what GeM checks, how to add or fix codes, and what to do if a buyer says no. - [Blog](/blog/) / - NIC code in Udyam for tenders: check it before you bid Policy & benefits - MSME - Eligibility - Policy # NIC code in Udyam for tenders: check it before you bid What the NIC code on your Udyam certificate means for MSE tender benefits, what GeM checks, how to add or fix codes, and what to do if a buyer says no. KSKetul Shah20 October 2026 · 13 min read Copied The short version A NIC code is the 5-digit National Industrial Classification 2008 code for each activity on your Udyam registration. You can list any number of manufacturing or service activities on one registration. In this guide - [What is a NIC code in Udyam registration?](#what-is-a-nic-code-in-udyam-registration) - [How NIC codes tie to MSE tender benefits](#how-nic-codes-tie-to-mse-tender-benefits) - [What happened in Glomet Corp LLP v. Union of India](#what-happened-in-glomet-corp-llp-v-union-of-india) - [Common tender items and their NIC codes](#common-tender-items-and-their-nic-codes) - [How to check your NIC codes before you bid](#how-to-check-your-nic-codes-before-you-bid) - [How to add or update NIC codes on Udyam](#how-to-add-or-update-nic-codes-on-udyam) - [What GeM checks](#what-gem-checks) - [Mismatch scenarios that get claims rejected](#mismatch-scenarios-that-get-claims-rejected) - [What to do if a buyer rejects your claim](#what-to-do-if-a-buyer-rejects-your-claim) - [Frequently asked questions](#faq) Key takeaways - A NIC code is the 5-digit National Industrial Classification 2008 code for each activity on your Udyam registration. You can list any number of manufacturing or service activities on one registration. - On GeM, the MSE EMD exemption goes to sellers with a valid Udyam who manufacture the offered product or provide the offered service. GeM checks that against Udyam data online, and the buyer checks the document you upload. - NIC divisions 45, 46 and 47 are wholesale and retail trade. Traders can register on Udyam, but only for priority-sector lending, not for procurement benefits. - If your Udyam activities don't cover the item, fix Udyam first. GeM's terms say it uses only the validated data until the source database is updated. - Add only activities you actually carry out. Misrepresenting self-declared facts on Udyam can attract a penalty under section 27 of the MSMED Act. Your Udyam certificate lists one or more NIC codes, one for each business activity you declared. On GeM, those codes and activity types help decide whether you get the MSE EMD exemption on a particular bid. If the certificate shows you as a trader, or doesn’t cover the item at all, a buyer can refuse the claim. I see this more often than I’d like: a supplier with a perfectly valid Udyam, registered years ago for something slightly different from what they sell today. So here’s what a NIC code is, how it ties to tender benefits, and how to fix yours before it costs you a bid. ## What is a NIC code in Udyam registration? NIC stands for National Industrial Classification. It’s the government’s standard list of economic activities, maintained by the Ministry of Statistics and Programme Implementation (MoSPI). The [NIC code list linked from the Udyam portal](https://udyamregistration.gov.in/docs/NIC-code-for-MSME-classification-definition.pdf) is NIC 2008, which has 21 sections, 88 divisions, 238 groups, 403 classes and 1,304 sub-classes. ### How the digits break down Each level adds a digit. Here’s how laptops sit in the hierarchy: LevelCodeDescription SectionCManufacturing Division (2-digit)26Manufacture of computer, electronic and optical products Group (3-digit)262Manufacture of computers and peripheral equipment Class (4-digit)2620Manufacture of computers and peripheral equipment Sub-class (5-digit)26201Manufacture of desktop, laptop and hand-held computers, mainframes and servers The first four digits follow the UN’s international classification. The fifth digit was added for India’s own needs. ### What the Udyam form asks for The [sample Udyam form](https://udyamregistration.gov.in/docs/UdyamApplication.pdf) has two relevant fields. Item 19 asks for the major activity of the unit: manufacturing or services. Item 20 asks for the NIC code of each activity, picked at the 2-digit, 4-digit and 5-digit levels, with each one tagged as manufacturing, services or trading. An “Add Activity” button lets you list more than one. That’s backed by the notification itself. [S.O. 2119(E) of 26 June 2020](https://udyamregistration.gov.in/docs/220191.pdf) says no enterprise can file more than one Udyam registration, but any number of activities, manufacturing or service or both, can be specified or added to the one it has. ## How NIC codes tie to MSE tender benefits Three sources matter here: the Ministry of MSME, GeM’s terms, and the bid document. They don’t say quite the same thing. ### What the Ministry of MSME says The Ministry’s procurement-policy FAQs have changed on this point. The [January 2022 version](https://www.dcmsme.gov.in/NewFAQs01022022.pdf) said benefits for an item should go only to MSEs registered for that item group (NIC code). The [revised FAQs of 25 March 2022](https://www.dcmsme.gov.in/FAQs-PPP_25032022.pdf) rewrote that answer: benefits should go to all eligible MSEs irrespective of the relevance of the product category. So on paper, the central MSE policy doesn’t require an exact NIC match. The tender you’re bidding on still sets its own conditions. ### What GeM says GeM’s General Terms and Conditions (GTC 4.0, version 1.29, dated 25 March 2026; [copy here](https://www.iiserbpr.ac.in/uploads/file_upload/GeM%20Latest%20Guidelines%20Mar%202026.pdf)) exempt MSEs from bid security only when they: - hold a valid Udyam registration - are the manufacturer of the offered product or service (the primary product or service in a bunch bid) - give a specific confirmation of this at bid submission and claim the exemption - have their credentials validated online through the Udyam website and through the supporting document the buyer checks Standard GeM bid documents spell it out further. The EMD clause quoted in the Glomet case below reads: “Under MSE category, only manufacturers for goods and Service Providers for Services are eligible for exemption from EMD. Traders are excluded from the purview of this Policy.” Your NIC activities are how Udyam records what you make or what service you provide. If they say “trading”, or describe a different product, the buyer has a documented reason to refuse. ### Traders: NIC 45, 46 and 47 For years, trading activities couldn’t be registered on Udyam at all. A [Ministry office memorandum of 2 July 2021](https://udyamregistration.gov.in/docs/OM_regarding_inclusion_of_Traders02072021.pdf) opened registration to NIC divisions 45, 46 and 47, covering wholesale and retail trade, but restricted their benefits to priority-sector lending only. The revised FAQs repeat this: traders, distributors, sole agents and works contracts are outside the MSE procurement policy. If every activity on your certificate starts with 45, 46 or 47, you don’t have an MSE procurement claim, whatever your turnover. ## What happened in Glomet Corp LLP v. Union of India The Delhi High Court decided [Glomet Corp LLP v. Union of India](https://delhihighcourt.nic.in/app/showFileJudgment/59409052025CW61982025_115243.pdf), W.P.(C) 6198/2025, on 9 May 2025. It shows how this plays out on a real GeM bid. ### The facts A buyer floated GeM bid GEM/2024/B/5512350 for a shotcreting machine. One bidder didn’t pay EMD and claimed the MSE exemption by uploading its Udyam certificate. A competitor complained that this bidder was a trader, not a manufacturer of shotcreting machines. The buyer agreed that the exemption didn’t apply. Its letter said the certificate wasn’t accepted because the bidder was not registered as a manufacturer of the offered product. The bidder then furnished EMD as a fixed deposit receipt and was declared L1. ### What the court decided The competitor asked the court to quash the award. The court dismissed the petition. The tender’s EMD clause said who was eligible for the exemption, but nothing in it said a bid would be rejected if EMD wasn’t furnished by the bid deadline. The court added that whether late EMD disqualifies a bid can vary from tender to tender. Two lessons for suppliers. The buyer checked whether the Udyam registration covered manufacture of the actual item, and a certificate alone didn’t settle it. And the bidder’s fallback of paying EMD later worked here because nothing in this tender made late EMD a ground for rejection. Another tender may say otherwise. On GeM, a Udyam certificate earns the EMD exemption only when it shows you make the thing you’re offering. ## Common tender items and their NIC codes Here are 5-digit codes for items and services that come up often in government tenders, all taken from the NIC 2008 list on the Udyam portal. Your own activity may sit in a neighbouring sub-class, so check the description, not just the heading. Tender itemNIC 2008 codeDescription in NIC 2008 Desktops, laptops, servers26201Manufacture of desktop, laptop and hand-held computers, mainframes and servers Wooden furniture31001Manufacture of furniture made of wood Steel furniture31003Manufacture of furniture primarily of metal Uniforms and garments14101Manufacture of all types of textile garments and clothing accessories Cables and wires27320Manufacture of other electronic and electric wires and cables LED and other lighting27400Manufacture of electric lighting equipment Printing paper17093Manufacture of printing, writing and photocopying paper ready for use Security guards80100Private security activities Housekeeping and cleaning81210General cleaning of buildings Facility management81100Combined facilities support activities Manpower supply78200Temporary employment agency activities Custom software62011Writing, modifying and testing computer programs for a particular client (excluding web-page design) Computer repair and AMC95111Repair and maintenance of computer and peripheral equipment Hired cars with driver49223Rental of private cars with driver Compare that with the trading codes for the same goods: 46511 is wholesale of computers and peripheral equipment, and 47411 is retail sale of computers. A laptop reseller registered under those codes is a trader as far as the procurement policy is concerned. ## How to check your NIC codes before you bid Do this once now, and again whenever you start bidding in a new category. - Download your current Udyam certificate (Print Udyam Certificate on the portal) and list every NIC code and activity type on it. - Mark each one as manufacturing, services or trading. Anything in divisions 45, 46 or 47 is trading. - List the GeM categories you bid in, or plan to, and what you actually do for each: manufacture, provide the service, or resell. - Match each category to an activity on the certificate. Look up the 5-digit description in the NIC 2008 list, not just the 2-digit heading. - For every category where you manufacture or provide the service but have no matching activity, update Udyam (steps below) before your next bid. - For every category where you only resell, plan to pay EMD and don’t give the manufacturer confirmation. - Read the EMD and MSE clauses in each new bid. State buyers can set their own terms, and I covered those in the [EMD exemption guide](/blog/emd-exemption-msme-how-to-claim/). ## How to add or update NIC codes on Udyam Since you can only hold one Udyam registration, a new activity goes onto your existing one. ### The steps - Go to [udyamregistration.gov.in](https://udyamregistration.gov.in/) and choose Update/Cancel Udyam Registration (it opens the Udyami Login page). - Enter your 19-character Udyam number (UDYAM-XX-00-0000000) and the mobile number on your application. - Choose OTP by mobile or email, click Validate & Generate OTP, then enter the OTP to log in. - Open the update option and go to the NIC activity section. - Search the activity, or pick it in three steps: 2-digit, 4-digit, 5-digit. Tag it as manufacturing or services and click Add Activity. - Check the rest of your details, submit, and download the updated certificate. There’s no fee for Udyam registration under S.O. 2119(E). If someone offers to “update your NIC code” for a fee, you can do it yourself. ### When your product doesn’t seem to fit Newer products don’t always have an obvious code. In a [Ministry office memorandum of 18 November 2022](https://udyamregistration.gov.in/docs/4022099.pdf), MoSPI pointed drone manufacturing to 26515 and biomass pellet manufacturing to 38300. Neither has its own heading. If you’re stuck, the Champions control rooms and District Industries Centres act as single-window help for Udyam under S.O. 2119(E). MoSPI has also [released NIC 2025](https://www.pib.gov.in/PressReleasePage.aspx?PRID=2191142), which moves to 6-digit codes. The Udyam portal’s NIC link and form still use the 5-digit NIC 2008 codes, so pick from what the portal shows you. ### Don’t add what you don’t do It’s tempting to add every code that might help on a bid. Don’t. S.O. 2119(E) says anyone who intentionally misrepresents or suppresses self-declared facts in Udyam registration or updation is liable to a penalty under section 27 of the MSMED Act. On a complaint, the General Manager of the District Industries Centre can hold an enquiry, and the state can amend your details or recommend cancellation. GeM’s GTC also lists furnishing inaccurate, false or misleading information to GeM or a buyer as a ground for suspension or debarment. ## What GeM checks GeM reads your MSE status from the Udyam database, and the GTC sets out how. Your eligibility for policy benefits is decided solely on data fetched or validated from databases such as Udyam, PAN, MCA21 and GSTN. If those databases are out of date, you have to update the database itself before updating GeM, and until you do, GeM uses only the existing validated information. The EMD exemption also needs a supporting document that the buyer validates, on top of the online Udyam check. The confirmation that you’re the manufacturer of the offered product or service is yours to give at bid submission; GeM doesn’t make it for you. And sellers must update their details on GeM within 7 days of a change, or face administrative action. So a NIC code added on Udyam the night before the deadline may not have reached GeM by the time the buyer evaluates. Update early. If you’re setting up on GeM for the first time, the [seller registration guide](/blog/gem-seller-registration-guide/) covers how GeM pulls your Udyam details. See GeM bids in the categories you're registered for A clean Udyam record pays off only on bids you see in time. TrackTender sends one 9 AM digest of your top 10 GeM matches on Telegram or WhatsApp, matched by state plus categories or keywords. Each card shows the bid number, buyer, location, deadline with days left, and EMD. [Get matched tenders →](/subscribe/) First month ₹30 (about ₹1/day), then ₹300/month. Cancel anytime. ## Mismatch scenarios that get claims rejected These are the patterns the rules point to. Each one gives a buyer a documented reason to refuse the exemption. ScenarioWhy it failsFix Only trading codes (45, 46, 47) on the certificateTraders get priority-sector lending onlyPay EMD; claim only if you genuinely manufacture You resell the item, though you make other thingsGeM requires manufacturer of the offered productDon’t confirm; pay EMD on that bid You make the item, but Udyam lists a different productThe buyer can’t verify you make what you offerAdd the right activity on Udyam Activity marked services, item is goods (or the reverse)Exemption is for manufacturers of goods or providers of servicesCorrect the activity type Udyam updated, GeM not yet refreshedGeM uses existing validated data until it updatesUpdate well before the bid Enterprise now classed mediumBenefits are for micro and small onlyCheck the [2025 limits](/blog/msme-classification-2025-tender-eligibility/) and the three-year rule ## What to do if a buyer rejects your claim Start with an honest question: does your Udyam record actually cover the item? If it doesn’t, the rejection is probably sound. Fix the record and move on. ### If the rejection is wrong - Write to the buyer quickly. Under the GTC, a representation goes to the buyer or its designated authority, with your GeM seller ID, entity name, the grounds and the relevant bid clauses. Attach the certificate page that shows the matching activity. - GeM handles only violations listed in the bid’s disclaimer, and only if you raised the complaint with the buyer before the bid opening date. It takes them only until technical evaluation is finalised. - The revised FAQs name the CHAMPIONS portal as the grievance cell for non-compliance with the MSE policy by a government department. ### If the bid allows EMD instead In Glomet, the bidder whose claim was refused paid EMD as a fixed deposit receipt and stayed in contention. Whether that’s allowed depends on the tender, as the court noted. Check the EMD clause before you count on it. Then fix the underlying record so it doesn’t happen on the next bid. A rejected claim on a bid you could have won is one of the more avoidable [reasons tenders get rejected](/blog/why-tenders-get-rejected-bid-disqualification/). ## Frequently asked questions What is the NIC code in Udyam registration? It's the National Industrial Classification code for each business activity you declare on Udyam. The Udyam form asks you to pick it in three steps, at the 2-digit, 4-digit and 5-digit levels of NIC 2008, and to mark each activity as manufacturing, services or trading. One registration can carry several activities. Can I add more than one NIC code in Udyam? Yes. The Udyam notification, S.O. 2119(E) of 26 June 2020, says any number of activities, manufacturing or service or both, may be specified or added in one Udyam registration. Each enterprise gets only one registration, so new activities go onto the existing one rather than a second certificate. How do I change or add a NIC code in Udyam? Log in at udyamregistration.gov.in through Update/Cancel Udyam Registration with your 19-character Udyam number and the mobile number on your application, then verify the OTP. Edit the NIC activity section, add the missing activity at the 2, 4 and 5-digit level, and submit. There's no fee for Udyam registration. Can traders get MSME benefits in government tenders? No. A Ministry of MSME office memorandum of 2 July 2021 let retail and wholesale traders (NIC codes 45, 46 and 47) register on Udyam, but restricted their benefits to priority-sector lending. The Ministry's procurement-policy FAQs say traders, distributors and sole agents are outside the MSE procurement policy, and GeM bids exclude traders from the MSE EMD exemption. Does my NIC code have to match the tender item exactly? Under the central policy, the Ministry's revised FAQs of 25 March 2022 say MSE benefits should go to eligible MSEs irrespective of the product category. On GeM, though, the EMD exemption requires you to be the manufacturer of the offered product or provider of the offered service, and buyers verify it against your Udyam record. So your declared activities need to cover what you're supplying. What can I do if a buyer rejects my MSE claim on GeM? Write to the buyer or its designated authority with your GeM seller ID, citing the GTC clause and your Udyam details. If the buyer wrongly demands EMD from an exempt seller, GeM can take it up, but only if you raised it with the buyer before the bid opening date. For non-compliance with the MSE policy itself, the Ministry of MSME's grievance cell is the CHAMPIONS portal. KS Written by Ketul Shah Ketul Shah is the founder of TrackTender and Anekant AI. He works with Indian SMEs that bid on government contracts and writes about GeM, e-procurement and how smaller suppliers can compete and win. [More about TrackTender →](/about/) Keep reading ## More from the blog - [20 October 2026Bid security declaration vs EMD: what it is and when it appliesWhat a bid security declaration is, when it replaces EMD, whether MSEs must sign it, what the format says, and the suspension you face if you break it.](/blog/bid-security-declaration-vs-emd/) - [20 October 2026Startup benefits in government tenders: EMD, turnover, GeMWhat DPIIT-recognised startups get in government tenders: EMD exemption, relaxed turnover and experience, Startup Runway, and how it differs from MSE benefits.](/blog/startup-benefits-government-tenders/) - [13 June 20265 Tender Tiger alternatives for government tenders in 2026Five honest, fact-checked Tender Tiger alternatives for Indian businesses, what each tender alert service does well, and how to pick the right one.](/blog/tender-tiger-alternatives/) ## Stop reading about tenders. Start winning them. 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