Hi Lalit, there is no said rule that students pursuing MA Economics through distance learning cannot apply. You should have obtained a degree in Economics or Statistics from a recognized University and be of not more than 28 years of age to be eligible for the Indian Economics Services exam conducted by the UPSC.  Selected candidates are placed in the Planning Commission, Planning Board, Ministry of Economic Affairs, National Sample Survey and other allied offices where specialists in economics and statistics are required. Good luck!

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