The All India Majlis-e-Ittehadul Muslimeen (AIMIM) party president said that while China was refusing to cooperate in blacklisting the terrorist, the Modi government placed an order of Rs 630 crore to buy bullet-proof vests from China.
Regarded by Pakistan as its most reliable friend, China has repeatedly thwarted efforts to implement United Nations sanctions against Masood Azhar, the founder of Jaish-e-Mohammed (JeM), the group that claimed responsibility for the attack that killed 40 paramilitary police in Indian-controlled Kashmir.
"We are disappointed by this outcome".
But China asked for a delay to the penalty, the fourth time it has blocked attempts to designate Masood Azhar a global terrorist.
"We will continue to pursue all available avenues to ensure that terrorist leaders who are involved in heinous attacks on our citizens are brought to justice".
Although the suicide bomber was a native of Indian-administered Kashmir, the attack was claimed by Masood Azhar's Jaish-e-Mohammad (JeM), an organisation Pakistan claims it has banned.
In 2016, India's statement on the Chinese decision was scathing.
"The original mistake, both on Kashmir and China, was committed by the same person", Jaitley said in a tweet.
A Chinese foreign ministry's spokesperson on Thursday said that Kashmir was an issue left over from history between India and Pakistan and hoped that the two countries would engage in friendly dialogue and consultation to resolve this and other outstanding issues.
On February 14th, a member of the Jaish-e-Mohammed (JeM) carried out a deadly attack in Pulwama, leading to the death of over 40 CRPF jawans.
U.S. had already made it clear that Masood Azhar is the founder and leader of and "clearly meets the criteria for designation" by the United Nations. There were high level visits to India including by the Chinese defence and foreign ministers as part of the efforts to mend ties.
China also added that it would play its responsible role in collaboration with all the concerned parties.
The UN security council wanted to freeze Masood Azhar's assets and slap a travel ban on him. The US said, "With respect to China, the United States and China share a mutual interest in achieving regional stability and peace, and a failure to designate Azhar runs counter to this goal".
Indian foreign minister Sushma Swaraj was in Beijing when Pakistan retaliated to the February 26 airstrikes.
A senior government official, who refused to be named as he was not authorised to speak to media, said there has been a move to "restrict" Chinese imports but that India was not in a position to replace products such as electronics.
She stated India could not have good bilateral relations with Pakistan if its army and ISI were bent on destroying the relations time and again.