Sitharaman Denounces DMK’s Proposal for Separate Currency, Warns of Secessionist Risks
Finance Minister Nirmala Sitharaman has sharply 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 could pose a threat to India’s unity.
The DMK, led by Chief Minister M.K. Stalin, has called for a regional currency, arguing that it would give Tamil Nadu greater control over its economic policies, especially in managing inflation and improving economic growth. The proposal has received significant attention, especially given Tamil Nadu’s key role in India’s economy.
However, Sitharaman immediately condemned the idea, warning that such a move would have dire consequences for both the state and the nation as a whole. “A separate currency for Tamil Nadu would lead to significant economic instability,” she stated. “It would disrupt India’s economic framework, create unpredictable exchange rates, and deter investments in the state.”
Sitharaman emphasized that the Indian rupee symbolizes the country’s unity and that any effort to introduce a different currency would weaken national cohesion. “The rupee represents the shared identity of all Indians. Proposals for separate currencies are an affront to the country’s sovereignty,” she added.
The proposal has sparked a political firestorm, with various reactions from political leaders across the spectrum. The ruling Bharatiya Janata Party (BJP) and several national political figures have condemned the DMK’s idea, calling it a direct threat to the country’s unity. Meanwhile, regional parties in support of the DMK’s stance argue that states should be given more fiscal autonomy to cater to their unique economic needs.
Economic and Political Fallout
Experts are concerned that introducing a separate currency for Tamil Nadu would create a host of economic challenges. From the complications of currency conversion to the risk of hyperinflation, economists warn that the move could destabilize the state’s economy and lead to broader national repercussions.
Dr. Arvind Subramanian, former Chief Economic Advisor to the Indian government, remarked, “A separate currency would destroy investor confidence and lead to inflationary pressures, ultimately harming the state’s economy.” Subramanian added that the proposal could set a dangerous precedent, with other states potentially seeking similar financial autonomy.
Politically, the move could deepen regional tensions. India’s federal system is based on a balance between the center and states, and Sitharaman’s remarks suggest that such a proposal could destabilize this delicate equilibrium. “India’s unity must be preserved. We cannot allow divisive moves that threaten the integrity of the nation,” she asserted.
DMK’s Defense of the Proposal
While the proposal has faced intense criticism, the DMK has defended it, asserting that Tamil Nadu, as one of India’s most economically significant states, deserves more control over its resources and fiscal policies. Party spokespersons argue that a separate currency could help protect the state’s interests and promote regional development.
The proposal for a regional currency is seen by some as part of a broader demand for greater autonomy. DMK leaders argue that Tamil Nadu’s distinct cultural and economic identity justifies such a move, and that it would lead to more efficient economic management within the state.
Conclusion
As the debate over Tamil Nadu’s proposal for a separate currency continues, the stakes remain high. While the DMK defends its stance as a bid for economic empowerment, critics—including Finance Minister Nirmala Sitharaman—warn that such a move could have grave economic and political consequences. As India grapples with this divisive issue, it remains to be seen whether the proposal will gain any further traction or be abandoned altogether.