He added he would form his own political party.
Speculation has been mounting in recent months over when the Tamil film superstar, known for his over the top action sequences and unique dance moves, would make his political debut.
Previously, he has only been affiliated with political parties in southern Tamil Nadu state.
Political instability
Tamil Nadu has been mired in political uncertainty since the death of the former Chief Minister Jayalalithaa Jayaram, also a one time film star, in December 2016.
Her death eventually led to a split in her party, the ruling All India Anna Dravida Munnetra Kazhagam party (AIADMK).
"In the name of democracy, politicians are robbing us of our own money in our own land. We need to bring a change from the base...The system has to change. Democracy has been corrupted and needs to be cleansed."
Religious adoration
Born Shivaji Rao Gaekwad, Rajinikanth had previously worked as a bus conductor in the city of Bangalore before finding fame as an actor in the 1975 movie "Apoorva Raagangal."
He has since starred in some of the country's highest grossing movies across four decades, drawing recognition for his inimitable style and larger than life personality.
Though he has worked primarily in Tamil cinema, his fan base is spread across India, where he is among the country's most popular icons. The level of adoration among his fans is often said to rival that of a religious figure.
Before the release of his most recent movie, 2016's "Kabali," his fans poured milk on cardboard images of the actor, an act of veneration usually reserved for Hindu deities.
Rajinikanth is today believed to be among Asia's highest paid actors, rivaling leading men such as Jackie Chan and Shah Rukh Khan in box office pulling power.
Tamil Nadu's actor-politicians
Rajinikanth is not the only Tamil superstar to enter into politics in recent months.
The popularity of both men cuts across social and caste divides.
In the coming months, India's two main national parties, the ruling Bharatiya Janata Party (BJP) and the main opposition Congress, will be keen on forging alliances with both actors' respective parties.
The next state elections in Tamil Nadu are due to be held in 2021.