Finance Minister Nirmala Sitharaman Warns of AI Influencing Elections

Mumbai: The Finance Minister Nirmala Sitharaman on Friday hit out at naysayers who continue to cast doubts about India's growth momentum.

Addressing the valedictory session of Global Fintech Fest 2026, Sitharaman used Prime Minister Narendra Modi’s term 'Naraz Foofa Ji(s)' to describe such critics who have a persistent habit to view India's demographic expansion through a lens of “perpetual pessimism” and rely on "vibecasting" rather than actual numbers.

“A familiar chorus that insists on measuring 21st century economic ambitions through a 20th century lens, constantly questioning whether our growth can keep pace with our movements,” she said.

Such people, she said, continued to assess the country’s ability to convert its young population into economic growth using outdated benchmarks.

They “are never short of reasons to doubt India's momentum and capabilities. Spending their time debating in television studios whether the demographic dividend has slipped away or turned into a burden."

"But while they remain stuck waiting for yesterday's answers, the young minds of this country have simply bypassed their cynicism and gone ahead and built it," she said.

Sitharaman said the younger generation was not waiting for legacy yardsticks to validate its productivity and was already building enterprises, writing code and shaping India's future.

"This generation is not waiting for legacy yardsticks to validate their productivity. They are already writing tomorrow's code, building enduring enterprises, and proving that India's greatest demographic advantage is an active, unstoppable reality," she said.

Citing the example of the audience in the hall, Sitharaman said it represented the 'living reality' of India's demographic dividend.

"I would ask them only to look at this hall. What is here before me is the living reality of our demographic dividend," she said.

Sitharaman also raised an alarm over the rapid development of artificial intelligence, particularly agentic AI systems and large language models (LLMs), warning that the technology could create new risks ranging from cyberattacks to manipulation of public opinion and election interference.

Sitharaman highlighted the potential of advanced AI systems to operate with increasing autonomy and said their capabilities could extend beyond conventional technology risks. She specifically pointed to the possibility of AI being used to influence people without their awareness.

"The model that I'm referring to is fully capable of influencing opinion on the ground without people even sensing that they are being influenced. Being a minister and being in politics, I'm clearly seeing it capable of influencing elections," she said.

Sitharaman also discussed the challenge of regulating emerging technologies without slowing innovation, particularly in India’s rapidly expanding fintech sector.

She said she had raised the issue with the Reserve Bank of India (RBI), asking whether a lighter regulatory approach could help address potential risks while allowing fintech companies to continue innovating.

“I am therefore glad that just yesterday, September 10, the Reserve Bank of India recognised the Unified Fintech Forum as another self-regulatory organisation for the fintech sector under the SRO-FT framework," she said.