Option (a) is correct: Britain had massive Home Charges — sterling obligations India had to pay to Britain. An overvalued rupee at 1s 6d meant fewer rupees were needed per sterling payment, enabling smooth remittance drain from India to Britain and maintaining India's creditworthiness in London capital markets.
Option (b) is not correct: While an overvalued rupee technically made foreign imports cheaper, the primary policy motivation of the British administration was balancing imperial fiscal transfers rather than intentionally providing structural support to domestic Indian importers.
Option (c) is not correct: The 1s. 6d. ratio made Indian goods significantly more expensive in international markets. This hit Indian agricultural and industrial exporters hard—particularly the cotton produce and textile sectors—and sparked severe backlash from Indian nationalists who argued it favored British manufacturers over domestic industries.
Option (d) is not correct: The primary focus of the fixed ratio was to peg the rupee securely to British Sterling to streamline bilateral colonial transfers and public debt management, rather than actively shielding the currency against gold market fluctuations.
Source: https://egyankosh.ac.in/bitstream/123456789/75097/1/Unit-7.pdf
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