UPSC - IES/ISS - UPSC Indian Economic Service/Indian Statistical Service
| Go Back
A combined competitive examination for recruitment to Grade IV of the Services mentioned will be held by the Union Public Service Commission commencing from 1st December 2012 in accordance with the Rules published by the Ministry of Statistics & Programme Implementation in the Gazette of India dated the 1st September, 2012.
1. The examination shall be conducted according to the following Plan:
Part I. Written examination carrying a maximum of 1000 marks in the subjects as shown below.
Part II. Viva voce of such candidates as may be called by the Commission, carrying a maximum of 200 marks.
The subjects of the written examination under Part I, the maximum marks allotted to each subject/paper and the time allowed shall be as follows:-
A. Indian Economic Service
|Sl.No.|| Subject allowed||Maximum marks||Time|
|1.||General English||100||3 hours|
|2.||General Studies||100||3 hours|
|3.||General Economics-I||200||3 hours|
|4.||General Economics-II||200||3 hours|
|5.||General Economics-III||200||3 hours|
|6.||Indian Economics||200||3 hours|
B. Indian Statistical Service
|Sl.No.|| Subject allowed||Maximum marks||Time|
|1.||General English||100||3 hours|
|2.||General Studies||100||3 hours|
Note : The details of standard and syllabi for the examination are given in Section II below.
2. The question papers in all the subjects will be of Conventional (essay) type.
3. All question papers must be answered in English. Question papers will be set in English only.
Candidates must write the papers in their own hand. In no
circumstances, will they be allowed the help of a scribe to write the
answers for them.
5. The Commission have discretion to fix qualifying marks in any or all the subjects of the examination.
If a candidate’s handwriting is not easily legible, a deduction will be
made on this account, from the total marks otherwise accruing to him.
7. Marks will not be allotted for mere superficial knowledge.
8. Credit will be given for orderly, effective and exact expression combined with due economy of words.
9. In the question papers, wherever required, SI units will be used.
10. Candidates will be allowed the use of Scientific (Non-Programmable type) Calculator at the examination.
type calculators will, however, will not be allowed and the use of such
calculators shall tantamount to resorting to unfair means by the
Loaning or interchanging of calculators in the Examination Hall is not permitted.
11. Candidates should use only International form of Indian numerals (e.g. 1,2,3,4,5,6 etc.) while answering question papers.
Part - II
Viva voce–The candidate will be interviewed by a Board of competent and unbiased observers
who will have before them a record of his career. The object of the
interview is to assess his suitablity for the Service for which he has
The interview is intended to
supplement the written examination for testing the general and
specialised knowledge and abilities of the candidate.
candidate will be expected to have taken an intelligent interest not
only in his subjects of academic study but also in events which are
happening around him both within and outside his own State or country,
as well as in modern currents of thought and in new discoveries which
should rouse the curiosity of well-educated youth.
The technique of the interview is not that of a strict cross
examination, but of a natural, through directed and purposive
conversation, intended to reveal mental qualities of the candidate and
his/her grasp of problems.
will pay special attention to assessing the intellectual curiosity,
critical powers of assimilation, balance of judgement and alertness of
mind, the ability for social cohesion, integrity of character,
initiation and capacity of leadership.
A candidate must be either :—
A candidate in whose case a certificate of eligibility is necessary,
may be admitted to the examination but the offer of appointment may be
given only after the necessary eligibility certificate has been issued
to him/her by the Government of India.
- A citizen of India, or
- A subject of Nepal, or
- A subject of Bhutan, or
that a candidate belonging to categories (b), (c), (d) and (e) above
shall be a person in whose favour a certificate of eligibility has been
issued by the Government of India.
- A Tibetan refugee who came over to India before 1st January, 1962 with the intention of permanently settling in India, or
person of Indian origin who has migrated from Pakistan, Burma, Srilanka
or East African countries of Kenya, Uganda, the United Republic of
Tanzania, Zambia, Malawi, Zaire and Ethiopia or from Vietnam with the
intention of permanently settling in India.
(II) ISS IES Age Limits :
A candidate must have attained the age of 21 years and must not have attained the age of 30 years on 1st August, 2012, i.e. he/she must have been born not earlier than 2nd August, 1982 and not later than 1st August, 1991.
The upper age limit prescribed above will be relaxable as follows:–
Upto a maximum of five years if a candidate belongs to a Scheduled Caste or a Scheduled Tribe.
a maximum of three years in the case of candidates belonging to Other
Backward Classes who are eligible to avail of reservation applicable to
maximum of five years if a candidate had ordinarily been domiciled in
the State of Jammu & Kashmir during the period from the 1st
January, 1980 to the 31st day of December, 1989.
a maximum of three years in the case of Defence Services personnel
disabled in operations during hostilities with any foreign country or
in a disturbed area and released as a consequence thereof :
a maximum of five years in the case of ex-servicemen including
Commissioned Officers and ECOs/SSCOs who have rendered at least five
years Military Service as on 1st August, 2012 and have been released
completion of assignment (including those whose assignment is due to be
completed within one year from 1st August, 2012) otherwise than by way
of dismissal or discharge on account of misconduct or inefficiency, or
- On account of physical disability attributable to Military Service, or
- On invalidment.
a maximum of five years in the case of ECOs/SSCOs who have completed an
initial period of assignment of five years of Military Service as on 1st August, 2012 and whose assignment has been extended beyond five
years and in whose case the Ministry of Defence issue a certificate
that they can apply for civil employment and that they will be released
on three month's notice on selection from the date of receipt of offer
Upto a maximum of 10 years in the case of blind, deaf-mute and Orthopaedically handicapped persons.
Note I - Candidates belonging to
the Scheduled Castes, Scheduled Tribes and the Other Backward Classes
who are also covered under any other clauses of para 3(II) (b) above,
viz. those coming under the category of Ex-servicemen, persons
domiciled in the State of J & K, Physically disabled etc. will be
eligible for grant of cumulative age-relaxation under both the
Note II -
The term ex-servicemen will apply to the persons who are defined as
ex-servicemen in the Ex-servicemen (Re-employment in Civil Services and
Posts) Rules, 1979, as amended from time to time.
- The age concession under para 3 (ii) (b) (v) and (vi) will not be
admissible to Ex-Servicemen and Commissioned Officers including
ECOs/SSCOs who are released on own request.
- Notwithstanding the provision of age-relaxation under para 3 (II) (b)
(vii) above, a physically disabled candidate will be considered to be
eligible for appointment only if he/she (after such physical
examination as the Government or appointing authority, as the case may
be, may prescribe) is found to satisfy the requirements of physical and
medical standards for the concerned Services/posts to be allocated to
the physically disabled candidates by the Government.
Save as provided above the age limits prescribed can in no case be relaxed.
date of birth accepted by the Commission is that entered in the
Matriculation or Secondary School Leaving Certificate or in a
certificate recognised by an Indian University as equivalent to
Matriculation or in an extract from a Register of Matriculates
maintained by a University, which extract must be certified by the
proper authority of the University or in the Higher Secondary or an
equivalent examination certificate.
These certificate are required to be submitted only after the declaration of the result of the return part of the examination.
other document relating to age like horoscopes, affidavits, birth
extracts from Municipal Corporation, service records and the like will
Matriculation/Higher Secondary Examination Certificate in this part of
the instruction includes the alternative certificates mentioned above.
Note 1 :
Candidates should note that only the Date of Birth as recorded in the
Matriculation/Higher Secondary Examination Certificate or an equivalent
certificate as on the date of submission of applications will be
accepted by the Commission and no subsequent request for its change
will be considered or granted.
Note 2 :
Candidates should also note that once a Date of Birth has been claimed
by them and entered in the records of the Commission for the purpose of
admission to an Examination, no change will be allowed sub- sequently
(or at any other Examination of the Commission) on any grounds
Note 3 : The
candidate should exercise due care while entering their date of birth
in column 8 of the application form for the Examination. If on
verification at any subsequent stage, any variation is found in their
date of birth from the one entered in their matriculation or equivalent
Examination certificate, disciplinary action will be taken against them
by the commission under the Rules.
(III) Minimum Educational Qualifications :
A candidate for the Indian Economic Service must have obtained a Postgraduate degree in Economics/Applied Economics/Business Economics/ Econometrics and a candidate for the Indian Statistical Service must have obtained a Post-Graduate degree in Statistics/Mathematical Statistics/ Applied Statistics from a University incorporated by an Act of the Central or State Legislature in India or other educational institutes established by an Act of Parliament or declared to be deemed as a University under Section 3 of the University Grants Commission Act, 1956, or a foreign university approved by the Central
General Economics - I
Part A :
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.
Theory of Production:
Factors of production and production function. Forms of Production
Functions: Coble-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.
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.
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.
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:
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.
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.
General Economics - II
Economic Thought: Mercantilism Physiocrats, Clasical, Marxist, Neo-classical, Keynesian and Monetarist schools of thought.
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
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.
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
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.
Gains from International Trade, Terms of Trade, policy, international
trade and economic development – Theories of Internal Trade; Ricardo,
Haberler, Heckcher-Ohlin and Stopleer-Samuelson – Theory of Tariffs –
Regional Trade Arrangements.
Balance of Payments:
Disequilibrium in Balance of Payments, Mechanism of Adjustments,
Foreign Trade Multiplier, Exchange Rates, Import and Exchange Controls
and Multiple Exchange Rates.
Global Institutions: UN agencies dealing with economic aspects, World Bank, IMF and WTO, Multinational Corporations.
General Economics - III
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.
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
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.
State, Market and Planning: Planning in a developing economy. Planning regulation and market. Indicative Planning. Decentralised Planning.
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.
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.
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.
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.
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.
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.
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.
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.
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
Definition, trends, estimates, consequences and remedies (control):
Wholesale Price Index, Consumer Price Index: components and trends.
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.
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.
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.
and Kolmogorov's inequalities. Laws of large numbers and central limit
theorems for independent variables. Conditional expectation and
(ii) Statistical Methods
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.
errors and large sample test. Sampling distributions of x,s2, t,
chi-squre and F; tests of significance based on them, Small sample
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.
iii) Numerical Analysis
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.
i) Linear Models
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.
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.
variance bound estimators. Cramer-Rao inequality. Bhattacharya bounds.
Sufficient estimator. factorisation theorem. Complete statistics.
Confidence interval estimation. Optimum confidence bounds. Resampling, Bootstrap and Jacknife.
iii) Hypotheses testing and Statistical Quality Control
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.
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.
iv) 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.
i) Sampling Techniques
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.
ii) Design and Analysis of Experiments
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.
iii) Economic Statistics
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.
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.
(i) Stochastic Processes
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.
(ii) Operations Research
of linear programming. Simplex procedure. Pirnciple of duality.