Indian Economic Service (IES) – Complete Guide
About the Indian Economic Service (IES)
The Indian Economic Service (IES) is one of the most prestigious services under the Government of India, conducted through the UPSC examination. It is considered one of the toughest economic examinations in the country, with a selection rate of less than 0.30%. Every year, thousands of students appear for this exam, but only a small fraction qualify to serve as economists within the Government of India.
Qualified candidates get the opportunity to participate in national-level economic policy-making, economic planning, evaluation of government schemes, and development work. At Deep School of Economics (Deep Economics), we ensure that the preparation for IES is systematic, result-oriented and guided by expert economics faculty.
An IES officer’s job includes diverse responsibilities such as economic data analysis, policy formulation, budget and financial evaluation, project management, and research-based advisory roles. They also help frame strategies, monitor their implementation and assess the impact of economic programs. After joining the service, officers get several long-term career opportunities in economic policy, research institutions, development projects, environmental economics, regulatory bodies, training institutes and more.
What is the Indian Economic Service (IES)?
The Indian Economic Service (IES) is a Group ‘A’ Central Government Service, meant for top-level policy-making and analytical roles.
- Group ‘A’ Service: This is the highest category of government services, responsible for leadership roles, decision-making and national-level administration.
- Central Government Service: Officers work directly under the Government of India, not under state governments. Their work influences economic decisions across the entire nation.
- Purpose: The objective of the service is to place trained economists in key government positions to strengthen India’s economic planning and policy system.
Main Purpose of the Indian Economic Service
IES was created to ensure that the government has in-house economic experts who can:
- Provide professional economic guidance backed by advanced knowledge.
- Conduct detailed economic analysis, study trends, datasets and macro-micro indicators.
- Help design development strategies, including policies for sectors like employment, education, health, trade and industries.
- Improve public service delivery systems so that schemes reach people effectively.
- Evaluate government programs to check whether they are achieving their intended outcomes, and suggest reforms wherever necessary.
Who Manages the IES?
The IES is administered by the Department of Economic Affairs (DEA) under the Ministry of Finance.
- Department of Economic Affairs (DEA): Handles economic policies, budgeting, public finance and international economic relations.
- Ministry of Finance: The ministry responsible for taxes, expenditure, economic planning and financial strategy.
- Indian Economic Service Rules: These rules define recruitment, promotion, training, duties, transfers and service structure.
These rules are updated periodically to match India’s changing economic priorities.
What Makes the IES Unique?
A distinguishing feature of the IES is that its officers are posted across more than 72 Ministries and Departments.
- Wider Presence: Unlike services confined to one ministry, IES officers serve wherever economic inputs are needed.
- Inter-Ministerial Service: Officers often move between ministries such as Finance, Health, Agriculture, Commerce, Defence, Education, etc.
- Inter-Departmental Service: They work across different departments, giving them broad exposure and experience in diverse economic sectors.
Where Do IES Officers Work?
IES officers contribute in multiple domains that influence the country’s economy:
- Finance & Economic Affairs: Budgeting, public debt, taxation, macroeconomic analysis.
- Social Sectors: Health, education, welfare, rural development.
- Agriculture & Rural Economy: Irrigation, food security, productivity, allied sectors.
- Industry & Services: Manufacturing, industrial growth, business regulations, services sector.
- Trade & External Relations: International trade, export–import, multilateral economic relations.
- Infrastructure & Environment: Transport, energy, digital infrastructure, environmental economics and sustainability.
Can IES Officers Work With Other Organisations?
Yes. Officers can go on deputation, meaning they temporarily serve outside their cadre.
Possible deputation areas include:
- International Organisations: UN, World Bank, IMF and other global bodies.
- Foreign Governments: For economic cooperation, advisory roles or research assignments.
- State Governments: For state-level policy-making and planning.
- Regulatory Authorities: SEBI, RBI, TRAI and others requiring economic expertise.
- Central Staffing Scheme: Posting in various ministries for special projects.
Role of IES Officers in Policy-Making
IES officers act as the government’s internal economists and provide evidence-based guidance. Their responsibilities include:
- Setting policy objectives clearly.
- Formulating new policies across different sectors.
- Supervising and reviewing policy implementation.
- Evaluating government schemes like MGNREGA, Ayushman Bharat, PM-KISAN and others.
- Using data-driven, factual and statistical analysis to support government decisions.
- Collaborating with experts in fields like finance, health, agriculture, industry, environment and more.
Eligibility Conditions
(I) Nationality
Candidates must be:
- A citizen of India, or
- A subject of Nepal/Bhutan, or
- A Tibetan refugee who came to India before 1 January 1962, intending to settle permanently, or
- A person of Indian origin migrated from specified countries, intending permanent settlement in India.
Those in categories (b)–(e) require a certificate of eligibility issued by the Government of India.
(II) Age Limits
Must be 21–30 years on 1st August 2024 (Born between 2 August 1994 and 1 August 2003).
Age Relaxation:
- SC/ST: 5 years
- OBC: 3 years
- Defence Personnel disabled in operations: 3 years
- Ex-servicemen & Commissioned Officers (ECOs/SSCOs): 5 years
- Persons with Benchmark Disabilities (PwBD): 10 years
Important Notes:
- Cumulative age relaxation can apply in multiple categories.
- “Ex-servicemen” as per the 1979 Re-employment Rules.
- PwBD candidates must meet prescribed medical and physical standards.
(III) Educational Qualifications
For Indian Economic Service (IES):
Postgraduate degree in Economics / Applied Economics / Business Economics / Econometrics from a recognised Indian or approved foreign university.
For Indian Statistical Service (ISS):
- Bachelor’s degree with Statistics / Mathematical Statistics / Applied Statistics OR
- Master’s degree in these subjects from a recognised Indian or approved foreign university.
Additional Notes:
- Candidates awaiting results may apply provisionally.
- Proof of qualification must be submitted with the Detailed Application Form (DAF).
- UPSC may consider equivalent qualifications at its discretion.
- For ISS, Statistics must be studied throughout the bachelor’s course.
(IV) Physical Standards
Candidates must meet the physical fitness standards prescribed in Appendix III of the official notification published in the Gazette of India (10 April 2024).
Exam Pattern – IES
UPSC – INDIAN ECONOMIC SERVICE (IES)
Basic Details:
- Total Papers: 6
- Total Marks: 1000
- Paper 1 – General English – 100 Marks
- Paper 2 – General Studies – 100 Marks
- Paper 3 – General Economics I – 200 Marks
- Paper 4 – General Economics II – 200 Marks
- Paper 5 – General Economics III – 200 Marks
- Paper 6 – Indian Economics – 200 Marks
Examination Time Table (3-Day Exam)
Exam Day 1
- General English (9 AM–12 Noon) – 100 Marks
- General Studies (2 PM–5 PM) – 100 Marks
Exam Day 2
- General Economics I (9 AM–12 Noon) – 200 Marks
- General Economics II (2 PM–5 PM) – 200 Marks
Exam Day 3
- General Economics III (9 AM–12 Noon) – 200 Marks
- Indian Economics (2 PM–5 PM) – 200 Marks
Exam Day 1
Paper 1
Books to be referred:
- A.P. Bhardwaj – Compulsory English
- 151 Essays – S. C. Gupta
- Essay Writing – from newspapers like DNA
- Idioms and Phrases – S. P. Malik
Exam Pattern:
- 30 Marks – Essay Writing
- 30 Marks – Precis Writing
- 10 Marks – Paragraph Writing
- 10 Marks – Make Sentences using Idioms (5 parts × 2 marks)
- 10 Marks – Make Sentences (5 parts × 2 marks)
- 10 Marks – Editing Error (5 parts × 2 marks)
Paper 2 – General Studies
The paper consists of 4 parts:
- History
- Indian Polity
- Indian Geography
- Indian Economy
Books to be referred:
- History – NCERTs (Ancient, Medieval, Modern, Post-Independence)
- Indian Polity – NCERT + Current Affairs
- Indian Geography – NCERT + “Indian Geography” by Arvind Kumar + Current Affairs
- Indian Economy – NCERT + Current Affairs
Exam Pattern:
- 5 Questions from History – 5 marks each = 25
- 5 Questions from Polity – 5 marks each = 25
- 5 Questions from Geography – 5 marks each = 25
- 5 Questions from Economy – 5 marks each = 25
Exam Day 2 –Paper 1
Consists of:
- Part A – Microeconomics (5 subsections)
- Part B – Mathematical Methods, Statistics, Econometrics
Books to be referred:
Microeconomics:
- H. L. Ahuja
- Nicholson & Snyder (for numericals)
- Hal Varian (for numericals)
- “Modern Microeconomics” – A. Koutsoyiannis
- Schaum’s Outline – D. Salvatore (for numericals)
Statistics:
- Business Statistics – J. K. Thukral
- Statistics – S. P. Gupta
- Schaum’s Outline – D. Salvatore
Econometrics:
- Schaum’s Outline – D. Salvatore
- D. Gujarati
Mathematical Methods:
- Mathematics for Economics – R. S. Bhardwaj
- Schaum’s Outline – Edward Dowling
General Economics – Paper 2
Books to be referred:
- Macroeconomics – H. L. Ahuja
- Growth and Development – M. L. Jhingan
- International Economics & Balance of Payments – D. N. Dwivedi
- Financial Markets – Mishkin / L. M. Bhole
Exam Day 3
General Economics – Paper 3
Books to be referred:
Environment Economics:
- Charles Kolstad
- Current Affairs
Public Finance:
- H. L. Bhatia
Indian Economics – Paper 4
Books to be referred:
- Indian Economy – Uma Kapila; Dutt & Sundaram
- Current Affairs
- Government Schemes
- Indian Economy – NCERT
- Indian Financial System – Pathak
- Economic Survey
- Union Budget
- Indian Economy – Mishra & Puri
IES Salary
Detailed information about IES salary, career progression, perks and promotions is usually discussed with students during counselling and orientation sessions at Deep School of Economics, along with the latest UPSC-based updates and pay commission details.