doolally.Why should it be considered politically incorrect?

The suggestion was inspired by the discussion about Bombay/Mumbai - a name change perceived by many to have been motivated by concerns about political correctness. As "doolally" derives from Deolali, not far from Bombay/Mumbai, it occurred to me that using it might also prove injudicious. I love the sound of "doolally" and made the reference more in jest than in earnest.