Economy2026
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?
Explanation
The Hilton-Young Commission recommended a fixed rupee-sterling exchange rate to stabilize the Indian economy, promote investment, and streamline remittances from India to Britain, which were crucial for Britain's post-war recovery. By maintaining a predictable exchange rate, the British government aimed to enhance India's creditworthiness, thereby fostering a favorable environment for financial flows and ensuring that Britain's financial interests in India remained secure amidst global economic uncertainties. This approach reflects broader themes in economic policy where fixed exchange rates can be used to promote trade stability, attract foreign investment, and manage inflationary pressures within a colonial context.
