China on Wednesday put on hold a request by Britain, France and the United States to add the leader of JeM, Azhar, to a UN sanctions blacklist which would subject him to a global travel ban, an assets freeze and an arms embargo.
MEA added saying, "We are disappointed by this outcome".
China has said its move would give it time for a "thorough and in-depth assessment" of the case against Azhar.
The postponement could last nine months, and it is the fourth time China - a close ally of Pakistan - has blocked attempts to have Mr Azhar designated as a terrorist.
Outraged by China blocking the attempt, responsible UNSC members warned they "may be forced to pursue other actions" at the Security Council if Beijing continued with this policy. Of course, China is going to lose any credibility about its role in counter-terrorism.
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. Remember, Jamat ud Dawa's Hafiz Saeed was designated a global terrorist with China's support after the Mumbai Attacks in 2008.
This February 14, a JeM suicide bomber blew up a convoy of trucks carrying CRPF troopers in Kashmir's Pulwama; 40 were killed.
India has long accused its neighbor of supporting Kashmir rebels.
The spokesperson said Washington will continue to work with the United Nations sanctions committee to ensure that the designation list is "updated and accurate". Jaish had accepted responsibility for the terror act, and it claimed responsibility for several other major terror attacks in India in the past too. Though JeM was banned by the United Nations in 2001, its chief has managed to escape sanctions mainly because of China's backing.
Thereby quashing India's bid to brand Azhar a global terrorist. But UNSC designation would have put curbs on his activities.
There will be negative impact on India-China relations. "Your tweet would be shown in the office of Jaish-e- Muhammad with much merry.I ask with great pain today that what is the Congress's commitment today to fight against terror", he told reporters here on Thursday. India can use the Consolidated List of the UN Sanctions Committee which contains the names of 262 individuals and 82 entities seeking action against Pakistan and isolating it. "In 2017, US, UK and France moved the proposal".
Militant groups opposing New Delhi's rule are engaged in a guerrilla war with Indian troops in the region since 1989.
"We are ready to engage with Pakistan in an atmosphere free from terror. talks and terror can not go together", she said.
".We can not, of course, accept this as it means falling out with China and it would be very unfair for a great country like China not to be in the Security Council", he tweeted, quoting from the letter. One day later Pakistan downed two Indian fighter jets along the Line of Control (LoC).