There are many questions related to this particular question that why should India sell Chinese goods and if not why it should not sell??  So here is the answer to the question.
First of all Indian goods are those goods which mostly depends upon Hand made and since it takes lot of time and effort it is costlier but in spite of its high price this products can be used for a long period of time. In India such goods cannot get the required momentum only because of it’s high price since most of the people in India belong to the poor or middle class families and so they prefer to go for products which are easily available at a cheaper price.
Now it comes to the Chinese products. These products are those which are very cheap in price although it doesn’t lasts for long but still people in India prefer it. China could afford selling goods at lower price because it takes less time and effort to produce such goods. Moreover China has latest upgraded technology to produce such goods.
Although Indian domestic markets are finding it hard to survive however it cannot ban the use of Chinese goods because such acts are against the norms of WTO. Moreover if India bans selling of Chinese goods Indian imports will decrease by 4.8%.
And also this will have large scale implications.
1.Since India will ban Chinese goods this will be a kind of disappointment for China and they will reduce their imports which will have an adverse effect on the Indian exports.
2.People in India belonging to lower class will not  be able to buy the costly Indian goods and hence will remain unsatisfied.
3.Most important thing is that we are living in the world of globalization every country is interdependent on economies of other countries. India  cannot detoriate it’s trade relations with the second largest economy of the world.
4.India imports  most of the primary materials from China like
Computer hardware,  Electronic Components at lower cost using which India produces the Final Products,  if Chinese products are banned India will not be able to produce the final goods and importing the primary goods from other countries will be costlier.
Although Chinese products have become a kind of threat for the Indian domestic businesses yet it cannot be banned.
But since there is a growing awareness among the consumers people in India demanded for various quality measures as per which each and every good coming from  China to India must confirm to the Indian Quality Standards. Since last year the bombs and crackers sent from China to India hampered the health of the consumers as well as our culture and heritage. According to the Intelligence Agencies the crackers contained Sulphur which if used would prove dangerous for the consumers. But inspite of this that we cannot ban Chinese products,According to a survey   the recently launched GST is likely  to break the interstate supply chain of the products which will be a kind of opportunity for the Indian businesses to come up with new ideas.
At last but not the least I would like to conclude by saying that if Indian Businesses wanted to outsmart the businesses established in China they  need  to think of various economies of scale so that goods can be produced at a cheaper rate and is in a position to satisfy the people of all the sections of the society.