GyanGramThe artificially fixed rupee-sterling exchange rate prescribed by the Hilton-Young Commission (1926) was adop…
Read the full question, pick an option, then see whether you were right. The answer is not shown until you attempt.
Choose an option before the answer.
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 ?
Pick an option to check yourself. The answer stays hidden until you attempt.
Approach: *Analyze the colonial economic policy behind the Hilton-Young Commission's exchange rate to understand how it favored British treasury requirements over Indian commercial interests.*
- **Correct Answer:** (a) Aiding the flow of remittances from India and maintaining India's creditworthiness
- The **Hilton-Young Commission (1926)** recommended fixing the rupee value at a higher rate of *1 shilling 6 pence (1s 6d)* instead of the traditional *1s 4d*.
- This artificially high rate overvalued the rupee, allowing the British Government of India to pay its **"Home Charges"** (sterling obligations and remittances to the UK) using fewer rupees, thereby balancing its budget and maintaining creditworthiness.
- This policy was heavily criticized by Indian nationalists and industrialists because an overvalued rupee made Indian exports (like cotton) expensive and uncompetitive globally, while making British imports into India cheaper.
Same year. Same subject. More attempts.
Keep attempting in GyanGram.
Filter by year or subject, attempt previous-year questions, and connect each miss back to a visual deck.