The information and broadcasting minister was speaking at the inauguration of the International Film Festival of India (IFFI) here.
Her remarks came in response to a banter actor Rajkumar Rao threw at her at the event.
Rao, who was co-hosting the event with actor Radhika Apte, said it was a co-incidence that film director Majid Majidi was an "Irani", just like the Union minister was.
Hearing the remarks, the Union minister smiled.
Later, in her address at the event, Smriti Irani said: "Rajkumar Rao, this (incident) should be known to the rest of the country, that you poked fun only at a minister. And it showed as a government how tolerant we are."
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