Shein, the Chinese fashion retailer, must hand over Indian customer data and relinquish control of its local operations to its partner, Reliance Retail, to return to India. Government disclosures on Tuesday detailed the stringent conditions that paved the way for Shein’s exemption from India’s sweeping ban on Chinese-linked apps.
Commerce minister Piyush Goyal revealed in a parliamentary session that Shein would function as a technology partner, while Reliance Retail Ventures Limited, a wholly owned subsidiary of Reliance, would hold complete ownership and operational control of the platform. This unique arrangement reflects India’s cautious stance on security concerns linked to Chinese companies.
Reliance and Shein announced their partnership last year, marking a potential comeback for the retailer in the world’s largest consumer market. However, unlike typical retail collaborations, this deal requires Shein’s operations to comply with heightened security measures, including audits by government-approved cybersecurity firms.
Under the agreement, Shein’s e-commerce platform must be hosted entirely within India. All data—personal and non-personal—collected from Indian customers will stay within the country, with Shein having no access to or control over this information. This strict localization requirement aligns with India’s ongoing ban of over 300 Chinese-linked apps since mid-2020, citing national security risks.
While apps like ByteDance’s TikTok and Alibaba’s UC Browser remain banned, Shein’s approval came after extensive reviews involving the Ministry of Textiles, IT ministry, and Ministry of Home Affairs. Goyal emphasized that this partnership offers economic benefits, including boosting local textile manufacturing and creating employment opportunities.
Through this deal, Shein-branded products will be manufactured by local suppliers in India for both domestic and global markets. The government expects the initiative to strengthen India’s position as a textile hub while providing a regulated pathway for Shein’s operations in the country.
