I rather look at this from a rational pov then moral grandstand from one soap box or another, since I have no dog in this fight.
My thinking is, this would be a good casus belli for India if they have the national ability to develop home grown alternatives.
If you look at the evolution of the Chinese market, one of the key reasons China was able to develop a vast and independent internet ecosystem was its ability to ban the U.S. based groups such as Youtube, Google, facebook all at select political moments. Had the Chinese never done this, there is no way its domestic eco-system would have developed the way it has. At best foreign firms would own a substantial minority share, instead the Chinese firms like Alibaba and Tencent were able to consolidate monopolistic positions at home and then use that as a base to expand outwards into SEA, India and other developing markets, thereby challenging what would otherwise be a U.S. based monopoly on leading information technology.
From a nation building and state capitalist perspective it was actually quite a smart move. At the time, the western content providers were all banned at one point or another based on individual political reasons (Google hacking, arab spring..etc) and while there were political reasons to do so (censor and control the discourse of Chinese popular opinion) there was vast economic benefits down the road. I am sure the high level thinking in policy making in China recognize this "two birds with one stone" aspect.
I suspect India would like to do something similar. Right now the "foreign barbarians" in India are not the technologically more advance American firms like in China's days in the 90's. It's cash rich and state backed Chinese firms (Alibaba, Tencent, Xiaomi, Douyin, and the like).
So seizing this as a good excuse to maybe not outright ban (we don't know if the TikTok ban won't be reversed at a later time) but even to throttle and restrict them in the domestic Indian market, provided there are domestic alternatives that can built up would be a good move 10-20 years down the road. Or even better, use the opportunity to shake down and force more technology transfer from the Chinese firms in return for market access. India like China has a sufficiently large population and thereby potential domestic market to pursue this strategy.