Indian Economic Service

Category: Economics

The Indian Economic Service (IES), also known as I.E.S., is a central civil service under Group A of the executive branch of the Government of India. In simpler terms, it is a government job that works across departments in India's government structure. Its main purpose is to provide professional economic analysis and policy advice.

Inter-Ministerial and Inter-Departmental Reach

The special nature of the IES role is seen in how it can work across diverse departments and ministries within the Indian central government. As estimated, the cadre officers serving in IES are deployed in more than 55 different government departments, showcasing the service's broad and inclusive reach.

Role and Importance of IES

IES plays a fundamental role in economic decision-making in the country. The IES officers bring their specialist knowledge to contribute to policies that directly impact India's economy and its citizens. With their economic expertise, they advise on fiscal matters to various government departments, helping them make informed decisions.

Key Responsibilities of IES

IES officers often undertake the task of interpreting and analyzing economic data, creating reports on economic trends, suggesting changes to economic policies, and enlightening the government on how these changes could impact different sectors and the general populace.

They are deeply involved in economic governance, financial management, policy formulation, and implementation, which makes them a critical part of the government machinery.

Employment and Influence in Government Entities

IES officers are prominently employed by various governmental institutions, agencies, and departments such as the Reserve Bank of India, Financial Institutions, Ministry of Economic Affairs, and Planning Commission, among others.

Every public policy decision in India requires economic scrutiny, and IES officers, through their knowledge and experience, play a crucial role in shaping these decisions. Their advisory role greatly influences critical economic policies framed by the Government of India.

IES under Indian Laws and Officials

Even though IES is under the executive branch of the Government of India, it is governed by numerous laws and parliamentary acts to ensure that its activities remain transparent, ethical, and within the frameworks of good governance.

Moreover, IES officers are accountable to the respective ministers and secretaries under whom they work, thus ensuring that every policy advice and decision made under their assistance is well within the guidelines of Indian law.

In conclusion, the Indian Economic Service operates as an essential unit in ensuring sound economic governance in India, addressing key economic challenges and contributing to the sustainable growth and development of the country.

The Foundation of Indian Economic Service

The Indian Economic Service (IES) was established under the directive of India's first Prime Minister, Jawaharlal Nehru. Nehru aimed to create an institution for the formulation and execution of India's economic strategies and projects. The initial steps towards its formation date back to 1952.

The V. T. Krishnamachari Committee

This process further evolved in 1953 when a committee headed by V. T. Krishnamachari submitted a report in September of that year. They recommended the launch of a service called the Statistical and Economic Advisory Service. However, Prasanta Mahalanobis, a well-known figure in the economic sector, disagreed with the notion of creating a combined Statistical and Economic Advisory Service.

Indian Cabinet's Decision

The Cabinet, during its meeting on February 12, 1958, concluded that two distinct services were necessary - a Statistical Service and an Economic Service. Eventually, The Indian Economic Service was founded on November 1, 1961, with the respective service rules being reported on the same day.

The Operationalization of Indian Economic Service

The actual operationalization of the service, however, didn't happen until 1964. This formalized the role of the Economic Service in shaping and deploying India's economic policies.

The Role of Chief Economic Advisor

The Chief Economic Advisor (CEA) to the Government of India is a key role within the service. Until 2009, the CEA's post was designated via the Union Public Service Commission. Until the 1970s, almost all CEAs originated from the IES, demonstrating the service's central place in the economic apparatus of the nation.

The IES, hence, plays a pivotal role in the economic planning and policy-making of India. Its analysis and input influence various sectors of the economy, including fiscal policy, industrial policy, labor policy, and social policy. It's a significant institution helping to shape India's economic trajectory.

Overview of UPSC Economics Service Exam

The Union Public Service Commission (UPSC) in India is responsible for recruiting individuals to various roles in the government sector. One such exam that the UPSC conducts is the Economics Service examination.

Eligibility Criteria for the Exam

In order to be eligible for the Economics Service exam, applicants must fulfill certain educational qualifications. Specifically, the key eligibility criterion is that the candidate must have accomplished his/her post-graduate degree. The degree should be in the field of economics or related subjects.

Importance of the Examination

The Economics Service exam is especially imperative as it is a gateway for talented and educated individuals to enter the economic sector of the Indian government. The officials recruited through this exam play a vital role in shaping the economic policies and infrastructure of the nation.

The Role of Economists in the Government

The economists who are hired through this exam are positioned in various government departments and agencies, where they apply their economic expertise to influence policy decisions and financial planning. These decisions heavily impact various sectors such as agriculture, finance, trade, labor and industrial development, among others.

Additional Notes

It is important to note that the UPSC holds the Economics Service Exam annually and candidates have to go through a rigorous selection process which includes a written test followed by an interview.

Lastly, while the educational eligibility criteria is a post-graduate degree in economics or related subjects, candidates are also often required to meet certain age and nationality criteria to be eligible for the exam. It is therefore necessary for potential candidates to thoroughly review all the eligibility conditions and exam-related information provided by UPSC on its official website.

In the Indian context, the UPSC's Economics Service Exam plays a crucial part in the effective execution of the nation's financial policies and strategies, to ensure smooth operation of its economy.

Simplified Text Summary

The content discusses the different grades and designations that exist in Indian administration. They are categorized from the topmost grade to the junior most grade. The positions listed and their total authorized strength are as follows:

Higher Administrative Grade + (HAG +)/ Principal Adviser

This is the topmost category within the administrative system. These employees perform managerial tasks and have the authority to make key decisions. There are only five authorized positions in this category.

Higher Administrative Grade (HAG)/ Senior Economic Adviser

This category comprises 15 positions and these officials provide senior-level advisory services. They play an essential role in defining policies and strategies of an economic nature.

Senior Administrative Grade (SAG)

Also called Economic Adviser, this category has a total strength of 89. These individuals are responsible for advising on economic analysis and macroeconomic policy problems.

Junior Administrative Grade (JAG)

This category includes Joint Directors and Deputy Economic Advisers, among which the high-ranked positions also have Directors and Additional Economic Advisers. This grade has 148 positions, and they progress to a higher grade based on their performance and capabilities.

Senior Time Scale (STS)

This category is for more junior positions. STS includes Deputy Directors or Assistant Advisers and has 114 authorized positions. Employees in this category can progress to the JAG level based on their performance.

Junior Time Scale (JTS)

This is the entry-level position in services with 107 positions. These officials possess the basic knowledge of conducting research and are mentored by seniors to take up higher tasks in the future.

Reserves

The organization keeps 40 positions in reserve, which remain vacant for various reasons like retirement, promotion, or sudden exit by an employee.

Overall, the total authorized strength of this system stands at 518 positions. This classification provides a clear understanding of various administrative roles, their responsibilities, and career progression, and it offers an overview of the hierarchal structure seen in the Indian administrative system. The hiring process for these positions is conducted based on strict norms and guidelines laid out by the Indian government. The candidates are selected through rigorous exams overseen by the Union Public Service Commission. Once selected, they are placed in these grades based on seniority and performance.

The hiring system adheres to policies and laws defined within the Indian Constitution under articles that provide the legal foundation for setting up these grades and defining their authority and duties. Furthermore, government bodies like the Ministry of Finance play a critical role in evaluating the economics-related roles within these grades, while the Institute of Public Administration in India is responsible for providing training and skills development. The Common Seniority List periodically measures the seniority of the candidates in these grades.