The European Union's ban on mango imports from India is unlikely to dent Asia's third-largest economy, analysts told CNBC, but it could create trade friction between the two economies.
The ban on mangos, along with aubergines, two types of squash and patra – a type of leaf used in Indian cooking – until the end of next year, came into force this week after consignments were found to be infested with fruit flies in 2013, the BBC reported Thursday.
Although European countries import a hefty number of the exotic fruit, with U.K. imports surmising £6.3 million ($10.64 million) annually, analysts said the overall impact on India's economy would be small.
Fresh fruits only account for around 0.2 percent of India's global exports – or $2.5 billion's worth. Mangos account for 5 percent of India's fresh fruit exports to the E.U.
"I think I can say with a fair degree of certainty that this will have zero impact on India's economy on a macro level, it's a drop in the ocean," said Glenn Levine, economist at Moody's.
While the impact is likely to be marginal, other analysts told CNBC the ban has increased trade friction between India and the E.U., which could have negative implications down the road given that Europe is India's largest export market.
Total Indian exports to the E.U. surmise €38 billion ($52.68 billion) annually, of which 7.5 percent are agricultural products.
Indian officials have voiced their disapproval, with India's commerce and industry minister Anand Sharma warning this week that the "unfair" decision could "potentially jeopardize" the flourishing agriculture trade between India and Europe, India's Economic Times reported.
According to Rajiv Biswas, Asia Pacific economist at IHS Global Insight, Indian officials have grown frustrated with the review as they believe it should have been lifted already.
Following the discovery of the infested mango consignments in 2013, the E.U. has asked India to improve their standards to comply with E.U. regulations, which the body is set to review in 2014.
"Since the E.U. is India's largest export market, accounting for 16.7 percent of Indian merchandise trade exports, this issue has become a potential source of friction in bilateral trade relations," he said.
"The E.U. and India are in the process of negotiating a Free Trade Agreement, and escalating bilateral trade tensions could hurt the progress of bilateral trade negotiations when the next Indian government takes office after the Indian elections end in mid-May," he added.
Biswas also pointed out that the mango ban could damage India's global reputation in terms of its health and safety standards.
"It highlights the need for India to strengthen its export quality control standards for fruit and vegetables for all export markets… an E.U. ban on some Indian fruit and vegetable exports could also trigger measures by other countries to tighten scrutiny of Indian fruit and vegetable exports," he added.
Furthermore, Indian grown premium Alphonso mangoes, which are popular in the U.K., are in season as the ban comes into force.
However, HSBC's co-head of Asian economic research, Frederic Neumann, told CNBC he thought the issue would blow over soon.
"This is an issue that in principle should be relatively easy to resolve so that the ban might not stay in place for a long period. With proper controls in place, E.U. authorities may again allow the resumption of mango exports to the E.U.," said Neumann.
Mango prices in India dropped 15 percent a few days prior to the official announcement of the ban, the BBC reported.