Yeah, that is about as smart these days as saying 'bomb' or 'gun' in an airport...also equally harmless as soon as a search reveals nothing, but the chance can not be taken. And after the attacks India has suffered, I think they were more than reasonable.
If the situation was turned around and an Indian citizen turned out to have ammo on a plane to Israel, similar caution would understandably be taken.
These days, no one wants to underreact because the risks are just too great.