Madrasi (Prakrit :Madarasi), also spelled asMadrassi, is a term used as a demonym for people fromsouthern India, usually used by those fromnorthern India.[1] It is ademonym to refer to the people ofMadras Presidency, including the people of present-dayAndhra Pradesh,Tamil Nadu, and parts ofKarnataka andnorthern parts of Kerala.[2][3][4][5] The term "Madrasi" is widely considered an inaccurate and oftenpejorative ethnic slur andstereotype. It homogenizes thediverse cultures,languages, and identities of over 250 million people in southern India. The use of the term is often seen as a form of generalization that ignores the distinct identities.[1]
Madrasi is a reference; it could be also a 'regional' slur
Although "Madras" is the name of a place, in this context it is used as an adjective and not as a proper noun.