Prelims 2026 · Economy · Question 2
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 ?<br/>
Answer
Aiding the flow of remittances from India and maintaining India's creditworthiness
The fixed rupee-sterling rate was meant to suit imperial financial interests: easing sterling remittances from India to Britain and preserving India’s standing in London financial markets. It was criticized precisely because it favored British fiscal-remittance needs rather than Indian economic interests.