UPSC Indian Economic Service / Indian Statistical Service Exam 2015

UPSC Indian Economic Service / Indian Statistical Service Exam 2015

The Indian Economic Service (IES) is an organized Group ‘A’ Central Service. The IES was constituted in 1961 with the objective of institutionalizing a core professional capacity within the Government to undertake economic analysis and render advice for designing and formulating development policies, strengthening delivery systems, and monitoring and evaluating the public programs. With the initiation of large-scale economic reforms in 1991 and the proliferation of the regulatory role of the government, such analysis and advice within the domain of the service has increased manifold. UPSC Indian Economic Service / Indian Statistical Service Exam 2015.


  • The Cadre Controlling of the IES is located in the Ministry of Finance (Department of Economic Affairs). The Cadre Controlling Authority is advised, on policy matters pertaining to the service, by the high-level IES Board, which is headed by the Cabinet Secretary. The management of the service is on the basis of the service rules called the IES Rules, first notified in 1961. The service rules, besides 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 The service rules of 1961 have since been superseded by the comprehensively revised IES Rules 2008, which were notified on 6.6.2008. These Service Rules are amended from time to time in accordance with the instructions of the Government. Latest Amendment to the Rules has been notified on 18th February, 2011 following the Cabinet approval to the revised cadre structure of the service.
  • The Cadre strength of IES is periodically reviewed by the IES Board, with the final Cadre structure of the service approved by the Cabinet. Reviews of the IES Cadre were earlier undertaken in 1991, 2000 and 2005. The latest review of the service was conducted in 2010, with the Cabinet approving the revised Cadre structure on 6.1.2011. Pursuant to this, the sanctioned strength of the IES Cadre is 511, consisting of 471 duty posts and 40 leave reserves.
  • A distinguishing feature of the service is that its Cadre posts are spread across different Ministries/ Departments of the Central Government, numbering around 55.
  • The service is, therefore, an inter-Ministerial and inter-Departmental service. The posts are primarily located in Ministries/ Departments dealing with economic and social sectors. Even within organizations that account for a large proportion of its Cadre posts, like the Planning Commission, IES officers posted therein serve in a diverse range of subject areas, such as finance, social sector, rural development, education, health, agriculture, industry, trade, transport, and information technology. IES officers are, thus, exposed to development issues in diverse sectors and contribute to policy-making in the Central Government over the entire span of their service career. With the economic reforms having transformed the nature and domain of economic policy-making in the country, the IES, as a service, provides a pool of in-house economic expertise that is well placed to meet the growing demand for analytical economic inputs for policy-making in the government.
  • Besides manning Cadre posts, IES officers go on deputation to serve in various domestic and international organizations such as UN bodies, foreign governments, state governments and regulatory bodies. Officers from the service are also appointed on deputation to posts in the Central Ministries/ Departments under the Central Staffing Scheme.
  • Direct recruits joining the service, after being offered appointment, undergo a comprehensive probationary training comprising the Foundation course (conducted for the All India Services and the Central Civil Services), training on Economics at the Institute of Economic Growth, Delhi, and training/ attachment at various national level Institutes of repute across the country. Capacity building of serving officers is carried out on an ongoing basis by conducting various in-service training programmes suited to the officers’ needs, from the point of view of building up professional capacity at work as well as developing soft skills. The flagship in-service training programme is the mid-career training of six-week duration comprising domestic learning and foreign learning components, conducted at a reputed management Institute in the country. Officers of the service are required to participate in three such mid-career training courses at different phases in their career.

Quest Education Offers coaching programs for UPSC IES Exam 2015 covering complete syllabus. Regular Classroom program offers comprehensive coverage of syllabus.

  • Weekend Batches also available.
  • Hostel Facilities Available Separately for Boys / Girls.

Call @ 09891.344.571 for batch details or Type UPSC IES and send it to 09891.344.571 and you will get a call back with all relevant details.

Authorized Strength of the various grades in the IES

Grade/ Designation
Pay Structure
I. Duty Posts
(1) Higher Administrative Grade + (HAG +)/ Principal Adviser 80,000 (fixed) 5
(2) Higher Administrative Grade (HAG)/ Senior Economic Adviser/ Senior Adviser 67,000- (annual increment @3%)- 79,000 15
(3) Senior Administrative Grade (SAG)/ Economic Adviser/ Adviser Pay Band-4: 37,400-67,000 plus Grade Pay: 10,000 89
(4) Junior Administrative Grade (JAG)/ Joint Director/ Deputy Economic Adviser{including Non-Functional Selection Grade (NFSG)/ Director/ Additional Economic Adviser} Pay Band-3: 15,600-39,100 plus Grade Pay: 7,600{Pay Band-4: 37,400-67,000 plus Grade Pay: 8,700} 146{110 i.e. 30% of senior duty posts}
(5) Senior Time Scale (STS)/ Deputy Director/ Assistant Economic Adviser/ Senior Research Officer Pay Band-3: 15,600-39,100 plus Grade Pay: 6,600 111
(6) Junior Time Scale (JTS)/ Assistant Director/ Research Officer Pay Band-3: 15,600-39,100 plus Grade Pay: 5,400 105
Total Duty posts 471
II Reserves 40
Total authorized strength 511


Mode of Direct Recruitment

Direct recruitment to the IES is on the basis of an all-India open competitive examination, called the IES Examination, conducted by the UPSC at such time and place as specified in the Employment News. The notification for conduct of the Examination will, 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.

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

Educational Qualifications

For Indian Economic Service Post Graduate Degree from a recognised university in Economics/Applied Economics/Business Economics/Econometrics.
For Indian Statistical Service Post Grade Degree from an Indian university in Statistics/Applied Statistics/Mathematical Statistics.

Candidates appearing in qualifying degree exams are also eligible provisionally subject to producing proof of passing along with Detailed Application Form

Scheme of Examination


(E) Scheme of Examination

Part-I : Candidates are required to appear in the following papers of conventional type papers.

(i) For Indian Economic Service

(a)    General English 100 Marks
(b)    General Studies 100 Marks
(c)    General Economics-I 200 Marks
(d)    General Economics-II 200 Marks
(e)    General Economics-III 200 Marks
(f)      General Economics 200 Marks

(ii) For Indian Statistical Service

(a)  General English 100 Marks
(b)  General Studies 100 Marks
(c)  Statistics-I 200 Marks
(d)  Statistics-II 200 Marks
(e)  Statistics-III 200 Marks
(f)  Statistics-IV

                     200 Marks

Part II : Interview for Personality Test

               200 Marks

A candidate who obtains the minimum qualifying marks in the written examination, as fixed by the UPSC at their discretion, is called by UPSC for viva-voce. Candidates called for viva-voce are also required to undergo Medical Examination Part-I (i.e. Medical Examination minus X-Ray examination of Chest) by the Central Standing Medical Board.

Steps for Appointment

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 (i.e. X-Ray examination of the Chest) by the Central Standing Medical Board. Offer of appointment is made to those successful candidates, who have been declared fit consequent to the Medical examinations, and after receipt of their satisfactory antecedent and character verification reports.

ISS Statistics I Syllabus 

1. Probaility

Elements of measure theory, Classical definitions and axiomatic approach. Sample space. Class of events and Probability measure. Laws of total and compound probability. Probability of m events out of n. Conditional probability, Bayes’ theorem. Random variables – discrete and continuous. Distribution function. Standard probability distributions – Bernoulli, uniform, binomial, Poisson, geometric, rectangular, exponential, normal, Cauchy, hypergeometric, multinomial, Laplace, negative binomial, beta, gamma, lognormal and compound. Poisson distribution. Joint distributions, conditional distributions, Distributions of functions of random variables. Convergence in distribution, in probability, with probability one and in mean square. Moments and cumulants. Mathematical expectation and conditional expectation. Characteristic function and moment and probability generating functions Inversion uniqueness and continuity theorems. Borel 0-1 law: Kolmogorov’s 0-1 law. Tchebycheff’s and Kolmogorov’s inequalities. Laws of large numbers and central limit theorems for independent variables. Conditional expectation and Martingales.

2. Statistical Methods

(a) Collection, compilation and presentation of data, Charts, diagrams and histogram. Frequency distribution. Measures of location, dispersion, skewness and kurtosis. Bivariate and multivariate data. Association and contingency. Curve fitting and orthogonal polynomials. Bivariate normal distribution. regression-linear, polynomial. Distribution of the correlation coefficient, Partial and multiple correlation, Intraclass correlation, Correlation ratio.

(b) Standard errors and large sample test. Sampling distributions of x,s2, t, chisqure and F; tests of significance based on them, Small sample tests.

(c) Non-parametric tests-Goodness of fit, sign, median, run, Wicloxon, Mann-Whitney, Wald-Wolfowitz and Kolmogorov-Smirnov. Rank order statistics-minimum, maximum, range and median. Concept of Asymptotic relative effciency.

3. Numerical Analysis

Interpolation formulae (with remainder terms) due to Lagrange, Newton-Gregory, Newton Divided different, Gauss and Striling. Euler-Maclaurin’s summation formula. Inverse interpolation. Numerical integration and differentiation. Difference equations of the first order. Linear difference equations with constant coefficients.

ISS Statistics II Syllabus

1. Linear Models

Theory of linear estimation. Gauss-Markoff setup. Least square estimators. Use of g-inverse. analysis of one-way and two way classified data-fixed, mixed and random effect models. Tests for regression coefficients.

2. Estimation

Characteristics of good estimator. Estimation methods of maximum likelihood, minimum chi-square, moments and least squares. Optimal properties of maximum likelihood estimators. Minimum variance unbiased estimators. Minimum variance bound estimators. Cramer-Rao inequality. Bhattacharya bounds. Sufficient estimator. factorisation theorem. Complete statistics. Rao-Blackwell theorem. Confidence interval estimation. Optimum confidence bounds. Resampling, Bootstrap and Jacknife.

3. Hypotheses testing and Statistical Quality Control 

(a) Hypothesis testing: Simple and composite hypothesis. Two kinds of error. Critical region. Different types of critical regions and similar regions. Power function. Most powerful and uniformly most powerful tests. Neyman-Pearson fundamental lemma. Unbiased test. Randomised test. Likelihood ratio test. Wald’s SPRT, OC and ASN functions. Elements of decision and game theory.

b) Statistical Quality Control: Control Charts for variable and attributes. Acceptance Sampling by attributes-Single, double, multiple and sequential Sampling plans; Concepts of AOQL and ATI; Acceptance Sampling by variables-use of Dodge-Romig and other tables.

4. Multivariate Analysis

Multivariate normal distribution. Estimation of mean Vector and covariance matrix. Distribution of Hotelling’s T2-statistic, Mahalanobis’s D2-statistic, and their use in testing. Partial and multiple correlation coefficients in samples from a multivariate normal population. Wishart’s distribution, its reproductive and other properties. Wilk’s criterion. Discriminant function. Principal components. Canonical variates and correlations.

ISS Statistics III Syllabus

1. Sampling Techniques

Census versus sample survey. Pilot and large scale sample surveys. Role of NSS organisation. Simple random sampling with and without replacement. Stratified sampling and sample allocations. Cos and Variance functions. Ratio and Regression methods of estimation. Sampling with probability proportional to size. Cluster, double, multiphase, multistage and systematic sampling. Interpenetrating sub-sampling. Non-sampling errors.

2. Design and Analysis of Experiments

Principles of design of experiments. Layout and analysis of completely randomised, randomised block and Latin square designs. Factorial experiments and confounding in 2n and 3n experiments. Split-plot and strip-plot designs. Construction and analysis of balanced and partially balanced incomplete block designs. Analysis of covariance. Analysis of non-orthogonal data. analysis of missing and mixed plot data.

3. Economic Statistics

Components of time series. Methods of their determination-variate difference method. Yule-Slutsky effect. Correlogram. Autoregressive models of first and second order. Periodogram analysis. Index numbers of prices and quantities and their relative merits. Construction of index numbers of wholesale and consumer prices. Income distribution-Pareto and Engel curves. Concentration curve. Methods of estimating national income. Inter-sectoral flows. Inter-industry table. Role of CSO.

4. Econometrics

Theory and analysis of consumer demand-specification and estimation of demand functions. Demand elasticities. Structure and model. Estimation of parameters in single equation model-classical least squares, generalised least-square, heteroscedasticity, serial correlation, multi-collinearity, errors in variable model. Simultaneous equation models-Identification, rank and other conditions. Indirect least squares and two stage least squares. Short-term economic forecasting.

ISS Statistics IV Syllabus

1. Stochastic Processes

Specifications of a Stochastic Process, Markov chains, classification of states, limiting probabilities; stationary distribution; Random walk and Gambler’s ruin problem. Poisson process, Birth and death process; applications to Queues-M/M/I and M/M/C models. Branching Process.

2. Operations Research

Elements of linear programming. Simplex procedure. Pirnciple of duality. Transport and assignment problems. Single and multi-period inventory control models. ABC analysis. General simulation problems. Replacemnet models for items that fail and or items that deteriorate.

3. Demography and Vital Statistics

The life table, its constitution and properties. Makehams and Gompertz curves. National life tables. UN model life tables. Abridged life tables. Stable and stationary populations. Different birth rates. Total fertility rate. Gross and net reproduction rates. Different mortality rates. Standardised death rate. Internal and international migration: net migration. International and postcensal estimates. Projection method including logistic curve fitting. Decennial population census in India.

4. Computer Application and Data Processing

(a) Computer Application

Computer system concepts: Computer system components and functions. The Central Processing unit, Main memory, Bit, Byte, Word, Input/Output Devices, Speeds and memory Capacities in computer systems.

Software concepts: Overview of Operating Systems, Types and Functions of Operating System, application Software, Software for multi-tasking, multi-programming, Batch Processign Mode, Time sharing mode, Concept of System Support Programme, Overview of Existing Software packages on Word Processing and Spreadsheets.

Overview of an application Specific Programme: Flow charts, Basics of Algorithm, Fundamental of design and analysis of Algorithm; Basics of data structure, Queue, Stack.

(b) Data Processing

Data processing: Digital Number System, Number conversions, Binary representation of integers, Binary representation of real numbers, Logical Data element like character, fields, records, files, Fundamentals of data transmission and processing incluidng error control and error processing.

Data base management: Data Resource management. Data base and file organisation and procesing. (a) Direct, (b) Sequantial, (c) Indexed Sequential file. Concepts of Client Server architecture, Data Base Administrator. An overview of DBMS software.

 IES General Economics I Syllabus

 Part A

1. Theory of Consumer’s Demand: Cardinal utility Analysis; Marginal utility and demand, Consumer’s surplus, Indifference curve Analysis and utility function, Price income and substitution effects, Slutsky theorem and derivation of demand curve, Revealed preference theory. Duality and indirect utility function and expenditure function, Choice under risk and uncertainty.

2. Theory of Production: Factors of production and production function. Forms of Production Functions: Cobb-Douglas, CES and Fixed coefficient type, Translog production function. Laws of return, Returns to scale and Return to factors of production. Duality and cost function, Measures of productive efficiency of firms, technical and allocative efficiency. Partial Equilibrium versus General Equilibrium approach. Equilibrium of the firm and industry.

3. Theory of Value: Pricing under different market structures, public sector pricing, marginal cost pricing, peak load pricing, cross-subsidy free pricing and average cost pricing. Marshallian and Walrasian stability analysis. Pricing with incomplete information and moral hazard problems.

4. Theory of Distribution: Neo classical distribution theories; Marginal productivity theory of determination of factor prices, Factor shares and adding up problems. Euler’s theorem, Pricing of factors under imperfect competition, monopoly and bilateral monopoly. Macro-distribution theories of Ricardo, Marx, Kaldor, Kalecki.

5. Welfare Economics: Inter-personal comparison and aggregation problem, Public goods and externality, Divergence between social and private welfare, compensation principle. Pareto optimality. Social choice and other recent schools, including Coase and Sen and Game theory.

Part B

Quantitative Methods in Economics:

1. Mathematical Methods in Economics: Differentiation and Integration and their application in economics. Optimisation techniques, Sets, Matrices and their application in economics. Linear algebra and Linear programming in economics and Input-output model of Leontief.

2. Statistical and Econometric Methods: Measures of central tendency and dispersions, Correlation and Regression. Time series. Index numbers. Sampling and Survey methods. Testing of hypothesis, simple non-parametric tests. Drawing of curves based on various linear and non-linear function. Least square methods and other multivariate analysis (only concepts and interpretation of results). Analysis of Variance, Factor analysis, Principle component analysis, Discriminant analysis. Income distribution: Pareto law of Distribution, lognormal distribution, measurement of income inequality. Lorenze curve and Gini coefficient.

Quest Education Offers coaching programs for UPSC IES Exam 2015 covering complete syllabus. Regular Classroom program offers comprehensive coverage of syllabus.

  • Weekend Batches also available.
  • Hostel Facilities Available Separately for Boys / Girls.

Call @ 09891.344.571 for batch details or Type UPSC IES and send it to 09891.344.571 and you will get a call back with all relevant details.


IES General Economics II Syllabus

1. Economic Thought: Mercantilism Physiocrats, Clasical, Marxist, Neo-classical, Keynesian and Monetarist schools of thought.

2. Concept of National Income and Social Accounting: Measurement of National Income, Inter relationship between three measures of national income in the presence of the Government sector and International transactions. Environmental considerations, Green national income.

3. Theory of employment, Output, Inflation, Money and Finance: The Classical theory of Employment and Output and Neo classical approaches. Equilibrium, analysis under classical and neo classical analysis. Keynesian theory of Employment and output. Post Keynesian developments. The inflationary gap; Demand pull versus cost push inflation, the Philip’s curve and its policy implication. Classical theory on Money, Quantity theory of Money. Friedman’s restatement of the quantity theory, the neutrality of money. The supply and demand for loanable funds and equilibrium in financial markets, Keynes’ theory on demand for money.

4. Financial and Capital Market: Finance and economic development, financial markets, stock market, gift market, banking and insurance. Equity markets, Role of Primary and Secondary markets and efficiency, Derivatives markets; Futures and options.

5. Economic Growth and Development: Concepts of Economic Growth and Development and their measurement: characteristics of less developed countries and obstacles to their development – growth, poverty and income distribution. Theories of growth: Classical Approach: Adam Smith, Marx and Schumpeter – Neo classical approach; Robinson, Solow, Kaldor and harrod Domar. Theories of Economic Development, rostow, Rosenstein-Roden, Nurske, Hirschman, Leibenstien and Arthur Lewis, Amin and Frank (Dependency school) respective role of the state and the market. Utilitarian and Welfariest approach to social development and A K Sen’s critique. Sen’s capability approach to economic development. The Human Development Index. Physical quality of Life Index and Human Povery Index.

6. International Economics: Gains from International Trade, Terms of Trade, policy, international trade and economic development – Theories of International Trade; Ricardo, Haberler, Heckscher-Ohlin and Stopler-Samuelson – Theory of Tariffs – Regional Trade Arrangements.

7. Balance of Payments: Disequilibrium in Balance of Payments, Mechanism of Adjustments, Foreign Trade Multiplier, Exchange Rates, Import and Exchange Controls and Multiple Exchange Rates.

8. Global Institutions: UN agencies dealing with economic aspects, World Bank, IMF and WTO, Multinational Corporations.

IES General Economics III Syllabus

. Public Finance: Theories of taxation: Optimal taxes and tax reforms, incidence of taxation; Theories of public expenditure: objectives and effects of public expenditure, public expenditure policy and social cost benefit analysis, criteria of public investment decisions social rate of discount, shadow prices of investment, unskilled labour and foreign exchange. Budgetary deficits. Theory of public debt management.

2. Environmental Economics: Environmentally sustainable development, Green GDP, UN Methodology of Integrated Environmental and Economic Accounting. Environmental Values: Users and non-users values; option value. Valuation Methods: Stated and revealed preference methods. Design of Environmental Policy Instruments: Pollution taxes and pollution permits, collective action and informal regulation by local communities. Theories of exhaustible and renewable resources. International environmental agreements. Climatic change problems. Kyoto protocol, tradable permits and carbon taxes.

3. Industrial Economics: Market structure, conduct and performance of firms, product differentiation and market concentration, monopolistic price theory and oligopolistic interdependence and pricing, entry preventing pricing, micro level investment decisions and the behavior of firms, research and development and innovation, market structure and profitability, public policy and development of firms.

4. State, Market and Planning: Planning in a developing economy. Planning regulation and market. Indicative Planning. Decentralised Planning.

IES Indian Economics Syllabus

1. History of Development and Planning: Alternative Development Strategies – goal of self reliance based on import substitution and protection, the post 1991 globalisation strategies based on stabilization and structural adjustment packages: fiscal reforms, financial sector reforms and trade reforms.

2. Federal Finance: Constitutional provisions relating to fiscal and financial powers of the states, Finance Commissions and their formulae for sharing taxes, Financial aspect of Sarkaria Commission Report, Financial aspects of 73rd and 74th Constitutional Amendments.

3. Poverty, Unemployment and Human Development: Estimates of inequality and poverty measures for India, appraisal of Government measures, India’s human development record in global perspective. India’s population policy and development.

4. Agriculture and Rural Development Strategies: Technologies and institutions, land relations and land reforms, rural credit, modern farm inputs and marketing – price policy and subsidies; commercialization and diversification. Rural development programmes including poverty alleviation programmes, development of economic and social infrastructure and New Rural Employment Guarantee Scheme.

5. India’s experience with Urbanisation and Migration: Different types of migratory flows and their impact on the economies of their origin and destination, the process of growth of urban settlements; urban development strategies.

6. Industry: Strategy of Industrial development: Industrial Policy Reforms; Reservation Policy relating to small scale industries. Competition policy, Sources of industrial finances. Bank, share market, insurace companies, pension funds, non-banking sources and foreign direct investment, role of foreign capital for direct investment and portfolio investment, Public Sector reform, privatization and disinvestments.

7. Labour: Employment, unemployment and under-employment, industrial relations and labour welfare – strategies for employment generation – Urban labour market and informal sector employment, Report of National Commission on Labour, Social issues relating to labour e.g. Child Labour, Bonded Labour, International Labour Standard and its impact.

8. Foreign Trade: Sailent features of India’s foreign trade, composition, direction and organization of trade, recent changes in trade policy, balance of payments, tariff policy, exchange rate, India and WTO requirements.

9. Money and Banking: Financial sector reforms, Organisation of India’s money market, changing roles of the Reserve Bank of India, commercial banks, development finance institutions, foreign banks and non-banking financial institutions, Indian capital market and SEBI, Development in Global Financial Market and its relationship with Indian Financial Sector.

10. Inflation: Definition, trends, estimates, consequences and remedies (control): Wholesale Price Index, Consumer Price Index: components and trends.

11. Budgeting and Fiscal Policy: Tax, expenditure, budgetary deficits, pension and fiscal reforms, Public debt management and reforms, Fiscal Responsibility and Budget Management (FRBM) Act, Black money and Parallel economy in India definition, estimates, genesis, consequences and remedies.