New Delhi, March 13, 2025 — Finance Minister Nirmala Sitharaman has strongly criticized the Dravida Munnetra Kazhagam (DMK) party’s proposal to introduce a separate currency for Tamil Nadu, accusing the party of promoting secessionist sentiments that undermine the unity and integrity of India. Sitharaman’s comments come after Tamil Nadu’s ruling party, led by Chief Minister M.K. Stalin, floated the idea of a regional currency as part of their broader push for greater economic autonomy for the state.
The DMK’s Proposal for a Separate Currency:
The idea of a distinct currency for Tamil Nadu has sparked a heated debate across India. The DMK has argued that Tamil Nadu, with its rich industrial base and significant contribution to the national economy, deserves more control over its economic affairs. In particular, they claim that a separate currency would enable the state to protect its interests, boost local industries, and address issues like inflation and resource allocation.
M.K. Stalin, while discussing the proposal, emphasized that Tamil Nadu is one of India’s top economic powerhouses, contributing immensely to sectors such as manufacturing, textiles, and information technology. Stalin has argued that a separate currency would give the state greater flexibility in managing its economy and would serve as a safeguard for Tamil Nadu’s future prosperity.
However, Sitharaman, one of India’s most senior cabinet ministers, has strongly rejected the proposal, calling it “dangerous” and “unpatriotic.” In a statement released to the media, Sitharaman stressed that any such move would not only harm Tamil Nadu’s economy but could also have far-reaching consequences for the stability of the entire nation.
Sitharaman’s Concerns Over Economic Stability:
In her critique, Sitharaman argued that the introduction of a separate currency would lead to economic chaos, as Tamil Nadu’s currency would likely have a fluctuating value compared to the Indian rupee. This would create significant challenges for businesses, investors, and the financial sector in the state, as the new currency would be subject to volatility and uncertainty.
“There would be a real risk of hyperinflation or currency devaluation,” Sitharaman warned. “Investors would hesitate to put their money into Tamil Nadu if there was no confidence in the value of its currency. This could create economic instability, affecting not just Tamil Nadu but the entire nation’s financial system.”
Moreover, Sitharaman pointed out that a separate currency could complicate trade relations between Tamil Nadu and the rest of India. Businesses operating in the state would be forced to deal with the complications of currency conversion, and the increased uncertainty could drive investors away. The idea of having different currencies in different states, she argued, would create a fragmented economic landscape that would harm the country’s overall economic growth.
Political Ramifications:
Sitharaman also expressed her concerns about the political implications of a separate currency. The finance minister warned that allowing individual states to issue their own currencies could set a dangerous precedent, leading to greater demands for autonomy from other regions. She noted that India’s unity as a nation is not only reflected in its political system but also in the common currency that binds all states together.
“The rupee is a symbol of the unity of our nation,” she asserted. “Proposals for separate currencies for individual states undermine the very fabric of our Republic. India is a union of states, and for the system to function smoothly, we must have a common currency.”
Sitharaman’s remarks come at a time when regional movements across India have been growing stronger, with various parties calling for more autonomy in matters such as resource distribution, education, and language. The DMK’s proposal has been viewed by many as a challenge to India’s federal structure, which relies on a balance of power between the central government and the states.
National Unity at Stake:
The issue of secessionism has been a sensitive one in India’s history. The country has experienced significant internal strife in the past, with regional movements in states like Jammu and Kashmir and Punjab pushing for greater independence. Although such movements have largely subsided, there remains a lingering sense of regional pride and, in some cases, resentment toward the central government.
Sitharaman emphasized that calls for a separate currency are not just an economic issue, but a political one that strikes at the heart of national unity. By promoting the idea of a separate currency, she warned, the DMK is sowing division and encouraging a separatist mindset that could have catastrophic consequences for India.
“I understand that Tamil Nadu has its unique cultural identity and that it wants more control over its economic destiny,” Sitharaman said. “But these goals should not come at the cost of undermining the unity of the nation. A separate currency is not the answer. We need to work together within the framework of the Indian Constitution to address regional disparities and ensure every state gets its fair share of resources.”
Opposition Reactions:
The DMK’s proposal has sparked polarized reactions across the political spectrum. While the ruling Bharatiya Janata Party (BJP) and several opposition leaders have condemned the idea, some regional parties have expressed support for it. Leaders from parties like the Nationalist Congress Party (NCP) and Trinamool Congress (TMC) have indicated that they too may seek more autonomy if the idea of a separate currency gains traction.
Congress leader Rahul Gandhi weighed in on the debate, stating that while regional aspirations are important, they must be pursued within the framework of a unified India. He echoed Sitharaman’s view that introducing a separate currency would divide the country, making it difficult for the government to maintain economic stability.
At the same time, Tamil Nadu’s ruling party has defended the proposal, arguing that it is not meant to divide the nation but to give Tamil Nadu more control over its economic resources. DMK spokespersons have said that the state’s economic prowess and unique needs justify the call for a separate currency.
Reactions From Economists:
Economists have largely backed Sitharaman’s position, warning that a separate currency would be a financial disaster. According to Dr. Arvind Subramanian, former Chief Economic Advisor to the Indian government, such a proposal would lead to major disruptions in trade, increase the cost of living, and create barriers to investment.
“India’s economy is one of the largest in the world because of its size and unity,” Subramanian said. “Splitting the currency system would create chaos. It’s essential that we maintain a single currency to keep the Indian economy functioning smoothly.”
Conclusion:
As the debate surrounding Tamil Nadu’s call for a separate currency continues, it remains clear that the issue is not just about economic policy but also about national unity. Sitharaman’s strong opposition to the proposal highlights the government’s commitment to preserving the unity of India, even as it acknowledges the need for addressing regional concerns. Whether the DMK’s call for a separate currency will gain traction or be abandoned remains to be seen, but it is clear that this issue will continue to be a contentious one in the country’s political and economic discourse.