New Delhi, March 13, 2025 — Finance Minister Nirmala Sitharaman has condemned the Dravida Munnetra Kazhagam (DMK) party’s proposal for a separate currency for Tamil Nadu, describing it as an attempt to promote secessionist sentiments that could harm the unity and stability of India.
The DMK, led by Chief Minister M.K. Stalin, has advocated for a state-specific currency, arguing that it would provide Tamil Nadu with more control over its economic policies. Stalin has suggested that a separate currency would enable the state to manage inflation and ensure better resource allocation for local industries.
However, Sitharaman strongly disagreed with the proposal, warning that it would lead to significant economic instability. In a statement, she said, “A separate currency for Tamil Nadu would disrupt the national economic framework, lead to volatile exchange rates, and damage investor confidence.”
The finance minister also emphasized that the Indian rupee is a symbol of national unity, and any attempt to break away from this would lead to a fragmented financial system. Sitharaman added that such a move could encourage other states to push for similar autonomy, threatening the very fabric of India’s federal system.
The proposal has sparked mixed reactions across the political spectrum. While the ruling Bharatiya Janata Party (BJP) and other central government leaders have strongly opposed it, some regional parties have voiced support for greater fiscal autonomy.
Sitharaman’s comments reflect concerns over the potential for political fragmentation, as she warned that pushing for a separate currency could deepen divisions between the center and the states, particularly in a time when regional movements are gaining momentum.
Economists have also weighed in, with experts warning that the idea could lead to economic chaos, including inflation and a loss of investor trust. Former Chief Economic Advisor Arvind Subramanian argued that breaking away from a unified currency would destabilize the country’s financial system.
As the debate continues, the proposal by the DMK has reignited conversations about the balance between regional autonomy and national unity, with Tamil Nadu’s economic future at the heart of the discussion.
