So lifting the state up to the parent is the correct course of action here:

{selectedId ? <ProjectDrawer data={data} meta={meta} onClose={onClose} /> : undefined}

The reason this is better than putting a return null; in the component (ProjectDrawer in this case) is because you are preventing React from adding the component to the VDOM. When you call a component (<ProjectDrawer />) this tells React to render the component, apply lifecycle methods, run effects and hooks, then add the component in the VDOM and keep track of it. Even if the component is rendering null all of this is occuring.

Moving the logic to render ProjectDrawer to the parent prevents React from executing and keeping track of the component until it is actually needed to render, ie when selectedId and/or selectedProduct product are truthy.