Indian Government Confirms Sale of Shein-Branded Products Is Not Banned Despite App Block

The Indian government blocked Shein's app on June 29, 2020, but did not ban the sale of its branded products. This information was shared in Parliament on Tuesday. The Ministry of Electronics and Information Technology (MeitY) had banned Shein along with other apps due to rising tensions with China at the Himalayan borders.

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Commerce and Industry Minister Piyush Goyal clarified in a written reply to the Lok Sabha that Shein-branded products could still be sold in India. Reliance Retail Ventures Ltd (RRVL), through its subsidiary Reliance Retail Ltd, has partnered with Roadget Business Pte Ltd, the Singapore-based owner of Shein, to create a local e-commerce platform.

Local Manufacturing and Employment Growth

This new platform aims to connect local manufacturers and suppliers to produce Shein-branded items for both domestic and global markets. Goyal mentioned that this initiative is expected to boost the Indian textile industry, including local handicrafts, and generate significant employment opportunities.

The Ministry of Textiles, after consulting MeitY and the Ministry of Home Affairs, expressed no objections to RRVL's proposal. In 2023, nearly three years after the ban, Shein entered into a partnership with Reliance Retail.

Data Security and Compliance

The agreement ensures that RRVL retains ownership and control over the platform through its wholly-owned subsidiary. Goyal stated that all platform data will be hosted in India, with Shein having no access or rights over it. The agreement mandates compliance with Indian laws and requires infrastructure localisation.

RRVL must adhere to existing Indian laws, and a government-approved cybersecurity auditor can conduct security audits of the entire infrastructure. Established in 2008, Shein is popular among millennials for its affordable fashion offerings.

In 2020, over 50 apps were banned by the Indian government due to concerns over national sovereignty and integrity. Despite this, Shein products remained available online through platforms like Amazon. Legal matters related to these issues were also addressed in the Delhi High Court.

The collaboration between Reliance Retail and Shein marks a significant development in India's retail landscape. It highlights efforts to integrate global brands while ensuring data security and compliance with local regulations.