Department of Economic Affairs : IES Division : About Indian Economic Services

  • The Indian Economic Service (IES) was constituted in 1961 with the objective of having an organized Group ‘A’ Service consisting of a specialized cadre of officers, trained in economic analysis, policy formulation and its implementation. The role of the IES can be broadly categorized in terms economic advice, economic administration, implementation of development programmes, besides dealing with other areas such as economic reforms, regulation, price fixation, and monitoring and evaluation. Constitution of the service was essentially to build capacity within the Government for rendering economic advice on issues of development policy and for playing an active role in economic administration. The launching of economic reforms in 1991 and the proliferation of the regulatory role of the government has led to increase in the need for such advice. The IES officers provide requisite inputs in all sectors of economic activity.

  • The management of the service is on the basis of the IES Rules, first notified in 1961. The service rules, inter-alia, provide for constitution of the service, specifies the various grades and sanctioned strength therein, future maintenance of the service, appointment, probation, seniority and conditions of service. The comprehensively revised IES Rules 2008 was brought out vide notification 6.6.2008.  

  • The IES is managed by its Cadre Controlling Authority in the Department of Economic Affairs. The Cadre Controlling Authority is advised by the high-level Indian Economic Service Board, headed by the Cabinet Secretary.  

  • In the rapidly globalizing environment, decision-making is increasingly guided by economic rationality. In view of the on-going reforms pursued by the Government of India, the role of IES officers has become all the more significant. Apart from the purely economic sectors, IES officers are now making crucial contribution towards policy making in social sectors also. The IES is expected to play a much greater role in the reforms process currently underway in the Indian economy. To adapt to the emerging requirements, steps are taken for review and restructuring of the service from time to time.  

  • The Cadre strength of IES is periodically reviewed by the IES Board chaired by the Cabinet Secretary and the final Cadre strength is approved by the Cabinet. A review of the IES Cadre was undertaken in 1991. Subsequently, Cadre reviews were undertaken in 2000 and 2005. The present Cadre strength of IES at various grades was approved by the Cabinet in its meeting held on 4.8.2005 to consider Cadre review and restructuring of the Service.  

  • Pursuant to the above, the sanctioned strength of the IES Cadre is at present 501, consisting of 461 duty posts and 40 leave reserves. The duty posts are spread over 35 Ministries/Departments of the Government of India.  

    Authorized Strength of the various grades in the IES  

    Grade-wise allocation of IES Cadre posts in the various Ministries/Departments of the  
    Government of India      


Method of Appointment to the Entry Grade of IES i.e. Junior Time Scale

  • At the entry grade of IES i.e. Junior Time Scale (Grade-IV), 60 per cent of the posts are filled through direct recruitment and the remaining 40 per cent by promotion of feeder post holders. 60 per cent of the entry-level posts by direct recruitment are filled on the basis of the results of an open competitive examination called the IES Examination, conducted by the Union Public Service Commission. The remaining 40 per cent of the entry-level posts by filled promotion of Economic officers or officers holding equivalent posts (pay scale of Rs. 6,500-10,500) recognized by the Cadre Controlling Authority for this purpose.  
    Some of the contours of conduct of the IES Examination by the UPSC are as under:

  • Holding of Examination: An open competitive examination to be held by the UPSC at such time and place as specified in the Employment News. The notification for conduct of the Examination would, as far as possible, announce the number of vacancies (including reservation for Scheduled Castes, Scheduled Tribes, physically disabled categories and Other Backward Classes) to be filled, as indicated by the Cadre Controlling Authority.  

  • The examination is usually held in combination with the examination for recruitment to the Indian Statistical Service.  

  • Age Limit: A candidate must have attained the age of 21 years and must not have attained the age of 30 years on the first day of January of the year in which the examination is held, subject to relaxation in the upper age limit for such categories as notified by the Government from time to time  

  • Educational Qualifications:  Post-graduate Degree in Economics or Applied Economics or Business Economics or Econometrics from a recognized University. A candidate who has appeared at a qualifying examination, the passing of which shall render him/her eligible to appear at the IES Examination, but has not been informed of the result, could apply for admission to the examination.  

  • Scheme of Examination: Written Examination [consisting of papers viz. General English (100 marks), General Knowledge (100), Economics Paper-I (200), Economics Paper-II (200), Economics Paper-III (200) and Indian Economy (200)] followed by a viva-voce (200). A candidate who obtains the minimum qualifying marks in the written examination as fixed by the UPSC in their discretion is called for viva-voce. Candidates called for viva-voce are also required to undergo Medical Examination (Part-I) by the Central Government Medical Board.  

  • UPSC recommend to the Government, candidates successful in the IES Examination, for appointment to the service. Successful candidates are required to undergo Medical Examination (Part-II) (X-Ray of the Chest) by the Central Government Medical Board. Appointment is made to the successful candidates only after their satisfactory antecedent and character verification.