During her address at the Global Fintech Fest 2025, Union Finance Minister Nirmala Sitharaman celebrated India’s digital transformation while also sounding a strong warning about the ethical challenges posed by artificial intelligence (AI). The minister highlighted India’s incredible progress in democratizing finance, noting that the country now accounts for over 50% of the world’s real-time digital transactions. She also emphasized that technology should not be used as a weapon.
This digital success is rooted in robust government initiatives. The Direct Benefit Transfer (DBT) system, for instance, has played a crucial role in public savings, preventing funds from going to “ghost entities” and saving an impressive ₹4.31 lakh crore. This achievement demonstrates how technology can be a powerful tool for promoting financial inclusion and good governance.
The minister also underscored India’s growing global ambition in technology and finance. She noted that with the USD 1.3 billion India AI Mission, India has officially entered the global AI arena. This initiative signals the nation’s commitment to becoming a leader in the field.
Additionally, at the event, she launched a new foreign currency settlement system at GIFT City5. This new infrastructure, which allows select financial centers to join GIFT IFSC, will enable foreign currency transactions to be completed on a near-real-time basis, a significant improvement from the previous 36-48 hour settlement window. She also mentioned that the government is working to strengthen the functioning of over 1,800 Global Capability Centres (GCCs) in the country.
However, the minister’s speech took a serious turn when she addressed the negative implications of AI. She shared a personal experience, stating, “AI has a darker side as well where several times I have seen my deep fake video, which is causing a point of concern”.
This firsthand warning highlights her deep stress over the potential for misinformation spread through AI-generated content. Her personal anecdote served as a powerful reminder of the urgent need for ethical guidelines and responsible development of AI to protect the public and ensure technology serves a positive purpose.
The FM’s address was a nuanced call to action. It celebrated India’s remarkable achievements in fintech while urging a cautious and responsible approach to emerging technologies. The message was clear: while innovation is vital, it must be balanced with ethical governance to prevent its misuse and secure the integrity of India’s digital ecosystem.
