The survey also said that the demand of electronic items like LCDs, mobile phones and other items made in China has also declined by 15-20%.
Chinese products like lights, gift items, lamps and wall hangings among other items might witness a decline by 40-45% in terms of sales.
The fall will happen because of the preference of Indian handmade products over the Chinese goods, stated a report.
Chinese products had recorded a 30% decline in sales last year on Diwali.
A survey by Assocham-Social Development Foundation mapped responses of wholesalers, retailers, traders in cities of Ahmedabad, Bengaluru, Bhopal, Chennai, Dehradun, Delhi, Hyderabad, Jaipur, Lucknow and Mumbai to estimate the demand for Chinese products across India.
"There seems to be a decline of about 40-45% in consumption of Chinese products on this Diwali in comparison to last year. Chinese items that are most sought fancy lights, lampshades, Ganesha and Laxmi idols, rangolis and crackers etc. As per the findings, this Diwali, people are preferring Indian products over Chinese goods," Assocham said.
The survey also said that the demand of electronic items like LCDs, mobile phones and other items made in China has also declined by 15-20%.
According to an estimate, the value of Chinese goods sold in 2016 during Diwali was around Rs 6,500 crore, out of which Rs 4,000 crore was for products such as toys, fancy lights, gift items, plastic ware, decorative goods etc.
Meanwhile, ahead of the festive season of Diwali, the Supreme Court on Monday restored a ban till November 1 on the sale of crackers in the Delhi-National Capital Region (NCR).
The court gave the verdict on a plea seeking restoration of the apex court's last year order.
Diwali is on October 19 and the order effectively means that no firecrackers will be available for purchase before the festival.
The top court, through its November 11 order last year, had suspended all licences which 'permit a sale of fireworks, wholesale and retail within the territory of NCR'.
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