It's a security issue if the Indian government, or anyone else for that matter, found a way to create a backdoor into RIM's system without RIM's knowledge and consent.
As that isn't the case, then it's a privacy issue because the Indian government demanded RIM put in a backdoor for reasons or surveillance of its population.
Does this privacy issue potentially lead to a security issue? Yes, but not for RIM, but rather for it's users that depend on the privacy of RIM's service over which they may transmit sensitive information.
