RK Shanmukham Chetty First Finance Minister From Coimbatore
No scriptEvery year, when the Union Budget is presented, the story of the first budget of independent India comes up again. It was presented on 26 November 1947 by a man from Coimbatore: Sir R.K. Shanmukham Chetty. This is the fourth post in our series on the pillars of Coimbatore, after G.D. Naidu, Sir Robert Stanes and the PSG family.
Early Life in Coimbatore
R.K. Shanmukham Chetty was born in Coimbatore on 17 October 1892, in a family that owned several mills in the city. He studied economics at Madras Christian College and then took a law degree from Madras Law College.
Like many educated young men of business families at the time, he turned to public life early - and he started at home.
From Municipal Councillor to the Central Assembly
His career climbed steadily from local to national politics:
| Year | Role |
|---|---|
| 1917 | Councillor, Coimbatore municipality |
| 1920-1922 | Member, Madras Legislative Council |
| 1924-1935 | Member, Central Legislative Assembly |
| 1932 | Deputy President, Central Legislative Assembly |
| 1933-1935 | President, Central Legislative Assembly |
| 1935-1941 | Diwan of Cochin |
| 1947-1948 | Finance Minister of India |
In his early career he was associated with both the Swaraj Party and the Justice Party. As President of the Central Legislative Assembly from 1933 to 1935 he presided over the main legislature of British India - a striking position for a man in his early forties from Coimbatore. He was knighted (KCIE) on 3 June 1933.
Economist on the World Stage
Shanmukham Chetty's training in economics made him a natural choice for international conferences. He represented India at:
- The International Labour Conference in Geneva (1928, 1929 and 1932), as the representative of Indian employers.
- The Imperial Economic Conference at Ottawa (1932).
- The League of Nations in Geneva (1938).
- The Bretton Woods monetary conference (1944), which created the International Monetary Fund and the World Bank.
Few Indians of his generation took part in so many of the meetings that shaped the world economy between the wars.
Diwan of Cochin
From 1935 to 1941 he served as Diwan (chief minister) of the princely state of Cochin, in today's Kerala. The Diwan ran the state's administration and finances on behalf of the Maharaja, which gave him direct experience of governing - experience he would need in 1947.
India's First Finance Minister
When India became independent on 15 August 1947, Shanmukham Chetty became the country's first Finance Minister in Jawaharlal Nehru's cabinet, bringing to the post his long experience as an economist and administrator.
On 26 November 1947 he presented independent India's first budget, covering the months from independence to the end of that financial year. It was prepared in extraordinary conditions: the country had just been partitioned, millions of refugees needed relief, and the government's finances had to be separated from Pakistan's.
He held the post for about a year and left the ministry in August 1948, after differences of view with Nehru.
Tamil and Public Life
Back in Tamil Nadu, Shanmukham Chetty was a strong supporter of the Tamil Isai movement, which campaigned for Tamil songs to have their due place in the Carnatic music concert. Annamalai University honoured him with a doctorate.
Death and Legacy
Sir R.K. Shanmukham Chetty died in Coimbatore on 5 May 1953, aged 60.
His legacy for Coimbatore is easy to state:
- A Coimbatore municipal councillor who rose to preside over India's central legislature.
- The economist who represented India at Bretton Woods.
- The minister who presented independent India's first budget.
He is a reminder that Coimbatore's contribution to India was not only in mills, pumps and motors - the story told in Coimbatore, the Manchester of South India - but also in public finance and national government.
Quick Facts
- Born: 17 October 1892, Coimbatore
- Education: Madras Christian College (economics), Madras Law College (law)
- President, Central Legislative Assembly: 1933-1935
- Diwan of Cochin: 1935-1941
- Finance Minister of India: 15 August 1947 - August 1948
- First budget: 26 November 1947
- Died: 5 May 1953, Coimbatore
Next in this series: more of the people whose work built Coimbatore.
Frequently Asked Questions (FAQ)
Who was the first Finance Minister of independent India?
Sir R.K. Shanmukham Chetty of Coimbatore. He held the post from 15 August 1947 to August 1948 and presented independent India's first budget on 26 November 1947.
Where was R.K. Shanmukham Chetty born?
In Coimbatore, on 17 October 1892. He studied economics at Madras Christian College and law at Madras Law College.
What posts did Shanmukham Chetty hold before independence?
He was a Coimbatore municipal councillor (1917), a member of the Madras Legislative Council (1920-1922), a member of the Central Legislative Assembly (1924-1935) and its President (1933-1935), and Diwan of Cochin (1935-1941).
When did R.K. Shanmukham Chetty die?
He died in Coimbatore on 5 May 1953, aged 60.