India is saying "no" to Chinese hardware in its military drones.

The reason is the same as why the United States, Great Britain, and Germany are also attempted to ban Chinese military hardware—security concerns. 

India and China have had several border standoffs of late, which have already prompted India to ban some Chinese apps and drones due to potential national security threats. For its miltiary drones, India is concerned that Chinese components—communication systems, cameras, operating software, and more—could "share" intelligence with China and compromise national security.

It may not be paranoia.

The U.S. also worries that Chinese IT firms and gear could be involved in systematic espionage.