According to the khaleejtimes, the country's Information and Broadcasting Ministry was consulting with the country's IT Ministry on taking 'action' against Youtube.
The government is threatening to block YouTube unless the website takes down the offending video.
YouTube said that it was taking the matter seriously, and will have a look at the video to see if it should be taken down.
Two Indian TV channels, IBN 7 and Sahara, are also in the dog box for showing footage of the video.
The video was made by Gautham Prasad, an Indian stand-up comedian based in the US. Apparently people are so angry about it in India that there had been "angry protests", which is a little ironic.
The skit here carries a public health warning. µ