UPSC 2026 › Modern History › British Administration & Economic Policies

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The artificially fixed rupee-sterling exchange rate prescribed by the Hilton-Young Commission (1926) was adopted by the British Government for which one of the following reasons ?

(a) Aiding the flow of remittances from India and maintaining India’s creditworthiness
(b) Providing support to Indian importers
(c) Encouraging export of cotton produce from India
(d) Preventing depreciation of the Rupee in terms of gold
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Answer: (a) Aiding the flow of remittances from India and maintaining India’s creditworthiness