This may be an underhand method to promote Indian content developers. Other than that there's no rhyme or reason to such bans.

In the 1960s they imposed a crippling tariff on Hollywood movies just so the government didnt have to take a stand on Indian moviemakers clamoring for liberalizing laws showing on-screen kissing and nudity. They felt Hollywood movies got away with bloody murder whereas what they could show would not even quicken the pulse of a nun.