New Batch - IES  
Starts 22nd August, 2022


Indian Economic Service

IES is the administrative inter-ministerial civil service under Group A of the Central Civil Services of the executive branch of the Government of India.

The role of the service can be generally classified in terms of economic advice, economic administration, execution of development policy and programs, along with others roles like price fixation, regulation, economic reforms, as well as monitoring and evaluation.

The Service plays a significant role in the globalizing environment where decision-making is highly directed by the economic. The IES is always playing its role in making a crucial contribution towards policy-making in social sectors.

The Indian Economic Service (IES) is exposed to almost all the sectors of government functioning. The officers in the Indian Economic Service play a versatile role of an in-house economist with experience and domain knowledge.

Indian Economic Service

The exam is divided into two parts:

  • Part I -  Written examination for 1000 marks divided across subjects mentioned below.

  • Part II - Viva Voce (interview) for 200 marks of candidates who will be shortlisted by UPSC.


Part I: Written Examination

The written exam of 3 Hours each, will consist of the following subject and the maximum marks allotted to each subject/paper will be as follows:

1. General English  - 100 Marks

2. General Studies  - 100 Marks

3. General Economics - I  - 200 Marks

4. General Economics - II  - 200 Marks

5. General Economics- III - 200 Marks

6. Indian Economics - 200 Marks


Part II: Interview for 200 marks when shortlisted by UPSC

Indian Economic Service

A candidate for the Indian Economic Service must hold a postgraduate degree in Business Economics or Economics or Econometrics or Applied Economics.

The postgraduate degree must have been issued by a university recognised by the state or central legislature.



  • Candidate must be a citizen of India; or

  • Candidate must be a subject of Nepal; or

  • Candidate must be a subject of Bhutan; or

  • Candidate must be a Tibetan Refugee who moved to India before 1st January 1962 for permanently settling in India.

  • Candidate must be a person of Indian origin migrated from Burma, Pakistan, East African Countries of Kenya, Sri Lanka, Uganda, Zambia, the United Republic of Tanzania, Zaire, Malawi, Vietnam or Ethiopia with intentions of permanently settling in India.

ArthaPoint IES
Indian Economic Service

1. Hybrid Mode (Live & Recorded)
2. Complete syllabus with all topics covered
3. Complete study materials provided
4. From Basic Level
5. Quick doubt resolutions 
6. Weekly Assignments
7. Mock tests series
8. Current Affairs 
9. Access to videos for one complete year or date of exam whichever is earlier.

*General Economics-I, II, III and Indian Economics

Indian Economic Service



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. Simple games of complete information, Concept of Nash equilibrium.

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. Macrodistribution theories of Ricardo, Marx, Kaldor, Kalecki.

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


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 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, longnormal distribution, measurement of income inequality. Lorenz curve and Gini coefficient. Univariate and multivariate regression analysis.

1. Economic Thought
Mercantilism Physiocrats, Classical, 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 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 of 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. IS-LM Model and AD-AS Model in Keynesian Theory.

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; Future 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 scool) respective role of state and the market. Utilitarian and Welfarist 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 Poverty Index. Basics of Endogenous Growth Theory.

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. Asian Financial Crisis of 1997, Global Financial Crisis of 2008 and Euro Zone Crisis- Causes and Impact.

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. IS-LM Model and Mundell- Fleming Model of Balance of Payments.

8. Global Institutions
UN agencies dealing with economic aspects, role of Multilateral Development Bodies (MDBs), such as World Bank, IMF and WTO, Multinational Corporations. G-20.

1. 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, Rio process 1992 to 2012
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, RIO Conventions. Climatic change problems. Kyoto protocol, UNFCC, Bali Action Plan, Agreements up to 2017, tradable permits and carbon taxes. Carbon Markets and Market Mechanisms. Climate Change Finance and Green Climate Fund.

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 behaviour 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.

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 stabilisation 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. 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.

4. 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.

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

6. 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.

7. Industry: Strategy of industrial development
Industrial Policy Reform; Reservation Policy relating to small scale industries. Competition policy, Sources of industrial finances. Bank, share market, insurance companies, pension funds, non-banking sources and foreign direct investment, role of foreign capital for direct investment and portfolio investment, Public sector reform, privatisation and disinvestment.

8. Labour
Employment, unemployment and underemployment, 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.

9. Foreign trade
Salient features of India’s foreign trade, composition, direction and organisation of trade, recent changes in trade, balance of payments, tariff policy, exchange rate, India and WTO requirements. Bilateral Trade Agreements and their implications.

10. 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. Commodity Market in India-Spot and Futures Market, Role of FMC.

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




Indian Economic Service

Indian Economic Service

Our faculty is a highly qualified former Delhi University Professor who completed Master's in Economics from Delhi School of Economics. She has taught Economics Honours at Delhi University and has been a guest lecturer at many reputed MBA institutes.

For teaching, we have gone through several books and journals both national and international, and gathered all the information so that it can presented and accessible to the student. The entire study material is prepared from very basic level so that every student can understand every topic from the syllabus. Besides the theory being extensively discussed, an enormous collection of problems has been added so that the student can learn to apply the concepts over a diverse spectrum of difficulty. All the problems have been worked out thoroughly so that in case the student gets stuck, we've got you covered! 

Students who are interested in economics as a topic might consider applying for the Indian Economic Service in India. Economics is a dynamic subject that is utilised to make national policy. The IES test not only gives a student access to policymaking and economic engagement but also fulfils desires for professional dignity.

At ArthaPoint, students will be given a detailed description of various career options, analytical skills, tricks, and methods to easily solve highly competitive examinations using ArthaPoint'S study materials and video content, giving them an advantage over other students.

Well, to be honest, this should not be a feature; it is required of any institute that assists in completing the course entirely; nonetheless, we attempt to go one step deeper in each area to provide a greater comprehension of the course.

We must comprehend that the IES course is more in-depth than the IAS Economics mains; thus, our preparation should be more serious. Furthermore, the expectation from an IES candidate is up to the postgraduate level in Economics, as opposed to IAS Economics, where the expectation is merely at the undergraduate level. ArthaPoint assists you in completely preparing for the Indian Economic Service Courses in India.