Irani was replying to a question of a student during the 8th Bharatiya Chhatra Sansad organised by MIT World Peace University here.
She was speaking on the topic 'Indian Democracy - Black or White'.
A student from Gujarat asked her about political parties playing divisive "Rajniti" (politics) and asked who would do "Rashtra-niti" for the country.
In her reply, the minister said, "Building toilets for girl students in schools is Rashtra-niti, not Rajniti. Transferring subsidies into accounts of the poor through Direct Benefit Transfer is Rashtra-niti, not Rajniti and doing a surgical strike across the LoC is Rashtra-niti and not Rajniti."
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She stands "condemned" by the person who spoke before her, she said.
"Condemned, for I would never embrace the words "Bharat tere tukde honge", today I am condemned because I said with pride 'Bharat Mata Ki Jai'," she said.
The democracy in India, Irani said, is not black or white or grey, but it has all the colours of rainbow.
"See on this platform, a lot of people, who have diverse points of view, spoke and you clapped louder for everyone. This is the beauty of democracy," she said.