Diwali is the festival of lights in India. (Photo : Getty Images)
During India's festival of lights, Diwali, many Indians called for a boycott of Chinese products. The boycott is in the response to China's alleged support to Pakistan.
Chinese embassy spokesperson Xie Liyan said, "India's boycott of Chinese goods will not have much impact on China's exports."
"China is more concerned that the boycott will negatively affect Chinese enterprises to invest in India and the bilateral cooperation, which both Chinese and Indian people are not willing to see," he added.
The New Delhi Sadar Bazaar, India's largest wholesale market for household goods, already had a 20 percent drop in sales of Chinese products after the call for the boycott.
The Indian government claims that there was no official call for a ban on Chinese products. They, however, said that the flooding of Chinese steel in the Indian market will be addressed by international anti-dumping laws.
"In the long run, (the) boycott will not only hurt Chinese goods sale but also cause negative effects to consumers in India," Xie said.
"Without proper substitutes, the biggest losers of the boycott of Chinese goods will be Indian traders and consumers," he stressed.
Xie also noted that the boycott will affect the export of Indian cotton to China as well as the importation of drugs to the sub-continent.
He said, "Moreover, 60 percent to 70 percent of Indian APIs (active pharmaceutical ingredients) for its pharmaceutical industry are from China."
Despite the call for the ban of products, analysts believe that the Indian market will still be close to China. A report was released by financial analyst publication Mint revealing that the Indian stock market is closely related to Chinese stocks.
