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Google has responded to Indian concerns and will censor images of sensitive military and scientific establishments in India, according to The Economic Times and AFX News.
Google has capitulated to the Indian request after the Telegraph reported that terrorists were using Google Earth to plan attacks on military facilities in Iraq.
For a list of censored locations in Google Earth, see here. Or, download the placemarks of censorship.
FWIW, the satellite imagery is so out-of-date for most places, I can’t imagine there being a huge security risk anyway. The imagery for my neighborhood in Brooklyn is at least two years old — Google Earth is showing a parking lot where there’s a luxury condo building now.