India, who is a transgender woman, made the comment after seeing former Apprentice star Andrew Brady dressed up in drag.
The 51-year-old recently told her fellow housemates she was scared of drag queens and was warned what was happening by Andrew before he transformed.
Despite this, the newsreader watched as Andrew stepped out into the living area in full drag before proceeding to cry.
Later, India claimed drag offended her in the same way a “black and white minstrel show” would insult a person of colour.
She said: “I know that people that perform in drag don’t do it intentionally, probably like in the old days when the black and white minstrels used to put on a show.
“Obviously black people would find that offensive, and I just want to make it apparent to you why I got upset.”
India’s comments infuriated fans of the show who blasted the star’s comparison, with one writing on Twitter: “Why does India expect equality and acceptance but is so intolerant of those into drag?”
“India seriously needs to look at her LGBT and history and see how much drag has helped progress trans rights,” added another.
A third commented: “She was completely fine when Courtney came into the house? I think India is gonna be my most hated housemate ever!”
Last week, India accused drag queens like RuPaul of “cheapening” the transgender debate.
At the time she told housemate Maggie Oliver: “For people like me it’s not a part time thing and it’s not a choice.
“That word transgender can mean everything from RuPaul to someone who’s Bob one day and Barbara another day and I think that cheapens the seriousness of it.”
Celebrity Big Brother continues tonight at 9pm on Channel 5.