A video of Finance Minister Nirmala Sitharaman asserting that “Foreign Institutional Investors (FIIs) are not needed, as Domestic Institutional Investors (DIIs) and retail investors can absorb market shocks” is circulating widely on social media platform X (formerly Twitter). Investigations reveal the clip is AI-manipulated, with no authentic basis.
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Key Details of the Viral Video
- Content: The video shows Sitharaman allegedly downplaying the role of FIIs in India’s stock market resilience, urging reliance on domestic investors.
- Origin: First flagged on X.com on February 12, 2025, the clip gained traction amid recent market volatility .
- Fact-Check: The PIB Fact Check Unit confirmed the video is digitally altered, splicing clips from a 2024 interview on GST reforms. AI tools detected inconsistencies in lip-sync and voice modulation .
Why the Video Matters
- Market Context:
- FIIs pulled out ₹42,000 crore from Indian equities in Q4 2024, contributing to a 13% Sensex decline since October 2024 .
- The Budget 2025 aimed to attract foreign inflows through tax stability and infrastructure spending, contradicting the video’s narrative .
- Deepfake Trend:
- This follows a pattern of AI-generated scams involving Sitharaman, including fake endorsements of investment platforms promising unrealistic returns .
- Government Response:
- The RBI and Finance Ministry have repeatedly warned against such videos, directing users to verify claims via PIB Fact Check portals .
Expert Insights: Can India’s Markets Survive Without FIIs?
- Short-Term Resilience: DIIs and retail investors injected ₹35,000 crore into equities in January 2025, cushioning FII exits .
- Long-Term Risks: Analysts stress FIIs’ role in liquidity and global credibility. Sunil Damania, Chief Investment Officer, MojoPMS, notes, “Ignoring FIIs risks isolating India from $6 trillion global pension funds” .
- Budget 2025 Focus: The government prioritized fiscal discipline and capex-driven growth, indirectly acknowledging FII importance .
How to Spot Fake Financial Videos
- Check for unnatural lip movements or voice tones.
- Verify claims on PIB Fact Check (https://factcheck.pib.gov.in) or WhatsApp (+918799711259).
- Avoid clicking embedded links promising high returns.
While domestic investors have buoyed markets recently, dismissing FIIs contradicts India’s economic strategy. The viral video underscores rising deepfake threats targeting financial systems. Investors are advised to rely on official channels for policy updates.