INDIAN ECONOMIC SERVICE (IES)

The Indian Economic Service (IES) was formed in the year 1961 with the cadre controlling authority of Department of Economic Affairs, Ministry of Finance & Company Affairs with a cadre size of 468 posts. The source of recruitment (in percentage) was through direct recruitment by 60%; by promotion – 40% and by there is no lateral entry promotion.

Service hierarchy:

Grade	Pay scales	Designations in field	Designations in headquarters	Any other Designation
Junior time scale	8000-275-13500	Research officer / Assistant Director	Research Officer/ Assistant Director	Project evaluation officer
Senior time scale	10000-325-15200	Deputy director / Sr. Research Officer	Assistnat adviser / Deputy Director
Junior administrative grade	12000-375-16500	Joint Director	Deputy Economic Adviser	Joint Commissioner
Selection grade	14300-400-18300	Director	Director/Additional Economic Adviser
Senior administrative grade	18400-500-22400	Adviser	Adviser
Higher administrative grade	22400-525-24500	Economic Adviser/Economic & Statistical Adviser	Senior adviser

Brief write up on the service outlining the main functions etc. including areas where interaction and coordination with other services is essential:

1. The Background

The IES was constituted in 1961 with the objective of having an organised ‘Group A’ Service to formulate and implement the economic policies and programmes of the country.

The management of the IES Cadre with the Department of Personnel & Administrative Reforms during 1961 and 1985. Thereafter, the allocation of business in this regard was transferred to the Department of Economic Affairs.

The service is inter-departmental in nature and postgraduates in economics are selected through an all-India competitive examination conducted by the UPSC since 1967.

The professional abilities of the selected candidates are further sharpened through a rigorous training at internationally reputed institutions.

2. Functions

In a globalising environment, the decision making is being increasingly guided by economic rationality. The IES provides a vital input in economic policy formulation and economic analysis for national development.

The reforms undertaken by the government have paved the way for the economists to play a greater role in the economic, social and infrastructural Ministries/Departments of the government of India. Various State Governments have evinced keen interest in the engagement of IES officers on deputation basis.

The officers are exposed to rich and varied experience in different Departments in the central government and are equipped with comprehensive and macro view of the economy, apart from possessing expertise in specific sectors of the economy.

Exclusive cadre posts were therefore created in large number of Ministries with provision to expand its role further. Many Departments are yet to be covered.

The nature of work and problem of every Department being unique, coordination and interaction between the Departments is necessary as it enables the officers to be more adept to the different nature of functioning in various Departments and provides better understanding and cooperation.

The IES is concentrated in the Economic Departments yet Departments dealing with social sectors use specialised policy formulation and monitoring services of IES office.

Intelligence organisations also use services of IES office.

Regulatory Bodies and other organisations have evinced interest in using the economic expertise available with IES.