"Matter being dealt with in accordance with established protocols", the defence ministry added.
China formally complained about the incident with Indian diplomats, Chinese foreign ministry spokesman Geng Shuang told a regular press briefing.
"As per standard protocol, the Indian border security personnel immediately alerted their Chinese counterparts to locate the UAV", the statement said.
Earlier, the Chinese military alleged that an Indian drone has "intruded" into its airspace recently and crashed into the Chinese side of the border and voiced strong dissatisfaction over the incident. "The Chinese border troops took professional and responsible attitude and verified the device".
An Indian drone crossed over the nation's border with China and crashed into in the Sikkim sector, triggering Bejing to protest the intrusion.
The Indian drone "intruded" into China's airspace and crashed recently, and China's border troops have conducted identification and verification over the vehicle, said Zhang Shuili, deputy head of the combat bureau of the Western Theater Command's joint staff department.
He said the the Sikkim section of China-India border has been delimited and Chinese side along the borderline is China's territory. The northeastern Indian state of Sikkim borders China via Tibet, as well as Bhutan and Nepal.
"The Indian move violated China's territorial sovereignty".
The Chinese military's claim came months after India and China were locked in a standoff in the Dokalam sector after the Chinese troops began constructing a road near the Bhutan tri-junction. "We will fulfil our mission and responsibility and defend China's national sovereignty and security resolutely", Zhang said.
The claims do not include details about the timing or specific location of the incident.
As NPR's Julie McCarthy reported from New Delhi in July, the problems stemmed from China's construction of a road in Doklam Plateau.
India has admitted that one of its unmanned aerial vehicles "lost contact" and crossed over into China.
The two countries have also always been at odds over India's hosting of Tibet's government-in-exile and their spiritual leader, the Dalai Lama, considered by China to be subversive because of his calls for Tibetan independence.