Chinese fast fashion giant Shein has officially re-entered the Indian market after being banned in 2020, thanks to a long-term licensing agreement with Reliance Retail. The deal allows Shein-branded products to be manufactured and sold in India, while Reliance Retail maintains full operational and data control. This partnership marks a significant shift in India’s stance on banned Chinese apps, as strict conditions have been imposed on Shein’s return.

A Controlled Comeback

Shein was originally banned in India alongside TikTok and other Chinese apps over data security concerns, following a border conflict between India and China. However, Indian Commerce Minister Piyush Goyal clarified that while the app was banned, the sale of Shein-branded products was not. Under the new agreement, all customer and application data will remain in India, with Shein acting only as a technological partner. This means Shein has no direct access to user data or operations, ensuring compliance with India’s data security regulations.

Limited Launch, But Plans for Expansion

The Shein India app was relaunched on Friday night and quickly gained traction, with over 10,000 downloads. Currently, Shein delivers only to major cities like Delhi, Mumbai, and Bengaluru, but plans to expand across India soon. The platform is once again offering affordable fashion, with prices starting as low as 199 rupees ($2.30; £1.90), appealing to young Indian shoppers who had embraced the brand before the ban.

Reliance Retail’s Strategy and Shein’s Global Expansion

The Shein-Reliance partnership is a strategic move for both companies. Reliance Retail, owned by billionaire Mukesh Ambani, is leveraging Shein’s global brand to diversify beyond its existing e-commerce platform, Ajio. Meanwhile, Shein will use India as a supply source for its global operations, supporting Reliance in building a strong manufacturing network. This could help boost Indian textile exports, creating opportunities for local garment manufacturers.

What This Means for India’s Tech and Retail Sectors

Shein’s return is a rare exception to India’s strict ban on Chinese apps, highlighting the possibility of regulated re-entry for other brands. It also reflects India’s growing role as a global manufacturing hub, especially in fashion and textiles. However, questions remain about whether similar partnerships will allow other banned Chinese companies, like TikTok, to make a controlled comeback in India.

For now, Shein’s revival under Reliance Retail represents a carefully managed balance between security concerns and economic opportunity, showing how global brands can re-enter India under strict local regulations.