India will seek to explore with governments across the globe how AI itself can be used to counter new AI-borne challenges like the instant one from Claude Mythos developed by Anthropic, Finance Minister Nirmala Sitharaman said on Friday. A day after chairing a high-level meeting to assess the risks that Mythos poses to India’s financial sector, the minister hinted that the protective systems need to be much more “versatile” than what the country already has.
Speaking at an event organised by the State Bank of India here, the minister said: “It has always been (the notion that) banks in India, because of greater digitisation, are adequately equipped to meet any challenges and risks. Now, because of the new challenge posed by Mythos—about which little is known—MeitY (the Ministry of Electronics and Information Technology) is actively engaging with tech companies, various authorities and governments globally to understand how it will unfold and what preparedness is needed.”
Versatile AI Preparedness
At Thursday’s meeting, banks were told to exercise a “high-degree” of vigilance and establish a coordinated mechanism to respond to threats emerging from the power of the advanced large language model. She added that there will be “a lot of interaction between banks in the coming weeks” to identify necessary investments, explore new technologies, and determine how AI could be utilised to address these challenges.
Experts have pointed out that because India’s financial system is deeply digitised with a robust digital public infrastructure, the risk could be graver if an advanced AI system detects weak spots across these interlinked software systems.
On the state of the economy, she said domestic consumption continues to power growth. The minister stressed the need for consistent and predictable policy support to sustain high-paced expansion of the gross domestic produyct (GDP). Stable policy backing is essential for sectors such as manufacturing, agriculture, tourism, and IT & related services to maintain the country’s growth trajectory. She also called for upgrading and supporting legacy industrial clusters.
“The Indian consumption story must continue,” Sitharaman said, highlighting that strong domestic demand has helped the economy remain resilient despite global turbulence. She added that Indian exporters, even while facing tariff-related challenges, are discovering new markets and sustaining growth through their ingenuity.
High-Tech Vigilance
Emphasising the evolving role of banks, she said lenders must balance digital expansion with a strong physical interface. Even as digital banking accelerates, she urged banks to retain a human touch in customer interactions to build trust.
In a media interaction, the minister said the disinvestment process of IDBI Bank will continue.
She also noted that a committee of bankers is examining whether to allow exclusive distribution tie-ups for third-party financial products or move toward an open architecture approach, with the Indian Banks’ Association leading consultations.
On the impact of the ongoing West Asia crisis, Sitharaman said the situation remains dynamic and the government will explore support measures if needed. She noted that bank asset quality remains strong, with non-performing assets at multi-decade lows, though a targeted package has been introduced for entities affected by US tariffs.