ABSTRACT
In view of their importance in the country’s import-export trade as also historical interests, this chapter discusses colonial currency policies in India. It seeks to answer three major questions: (a) what were the efficacies of imperial currency policies in British India to resolve the scarcity of currency? (b) did the prevailing currency standard cause India’s loss by commission while remitting ‘home charges’ to London? if yes, to what extent? and (c) what were the impacts of the currency standard on India’s export-import trade? The chapter concludes that the imperial policies utterly failed to accomplish their objectives, and that, because of ill-designed policies, the government met with significant loss for remitting ‘home charges.’ It also challenges the contemporary opinion that currency policies promoted the interest of India’s domestic industries.
