Boycotting Chinese products may not be feasible for India as the domestic industry is dependent on inputs from the neighbouring country, FIEO said on Thursday.
Federation of Indian Export Organisations (FIEO) President S K Saraf said that India needs to be cautious while banning or restricting Chinese goods.
It is "not feasible as we are dependent so much on Chinese products," he told reporters.
India can cut its dependence on Chinese goods only when it becomes self-reliant and start producing same goods in India or source from other markets.
In the wake of increasing border tensions between the two countries, voices are getting stronger to restrict or boycott Chinese goods in the country.
He added that it should be left with the people whether they want to buy Chinese goods or not.
FIEO Director General Ajay Sahai said "knee jerk" reaction on Chinese goods is not good.
According to the federation, India's exports to China grew from USD 16.5 to USD 16.95 billion in 2019 while imports declined from 73.8 billion to 68.2 billion in 2019.
Similarly, India's exports to Hong Kong in 2019 stood at USD 11.5 billion as against imports of USD 17.3 billion imports.
"We need to look into the totality of trade with China and Hong Kong. Much dependence on China can be reduced with short to long term plans," Saraf added.