In early 19th century, the valuation system updates were not that fast as in todays internet era, where people could have dumped silver much faster to reduce the loses. The strategy of devaluation of silver and making Gold as standard was devised by Issac Newton. The British had awareness of what impact this change in currency standard will have on Indian economy, but they still did it to gain control over India. Oscar Wilde in his play The Importance of being Earnest has a dialogue by Miss Prism to Cecily, Cecily, you will read your Political Economy in my absence. The chapter on the Fall of the Rupee you may omit. It is somewhat too sensational. Even these metallic problems have their melodramatic side.
In the paper by Prof.Matthias Morys, University of York and Paper on gold standard and Ottoman Empire by Dr. Cosun Tuncer , it is evidently pointed out that the Core and Peripheral system in the Classic gold standard era (1870 1914), where the Core (consisting of British, ?France, ?Germany and few other European countries) exploited the exchange rates, interest rates, discount rates, cover ratio and access to foreign reserves for their advantage against Peripheral countries (that included India). For example; England, ?Germany, ?France and ?Netherlands are the only countries whose exchange rate never deprecated more than 1% (i.e. they got more gold for same amount of money every time).