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?
Answer: (a)
The Hilton-Young Commission (Royal Commission on Indian Currency and Finance, 1926) recommended fixing the rupee-sterling rate at an artificially high 1s 6d (instead of the market-driven 1s 4d). Britain adopted this mainly to ease its "Home Charges" — massive sterling remittances from India covering administrative costs, pensions, military expenses, and public debt interest. An artificially strong rupee meant fewer rupees were needed to buy the sterling required for these transfers, easing remittance flows and preserving India's perceived creditworthiness in London. It wasn't primarily about supporting Indian importers (a side effect, not the goal), and it actually hurt cotton exports by making Indian goods costlier abroad, rather than encouraging them. Gold-depreciation prevention was a separate, secondary concern.