Shein, the popular Chinese fast fashion app, has made its return to India after being banned for nearly five years. The app has re-entered the Indian market through a licensing agreement with Reliance Retail, a subsidiary of Indian billionaire Mukesh Ambani’s Reliance Industries. This move marks a significant shift in the landscape of online retail in India, especially for fashion enthusiasts.

The deal allows Shein to sell products that are manufactured and sourced within India, which aligns with India's push for a self-reliant economy and local production. However, the terms of the deal come with strict conditions. According to India’s Commerce Minister Piyush Goyal, Shein must store all customer and application data within India, ensuring the country retains full control over data security. Shein will not have any access to this data, a crucial point given the concerns that led to the app’s initial ban in 2020.

Shein’s return is part of a long-term strategy by Reliance Retail to diversify its portfolio. While the company has traditionally focused on international brands through its Ajio online platform, this partnership with Shein will expand its presence in the fast fashion space. The app was relaunched on Friday evening and, as of now, has been downloaded by more than 10,000 people. Shein’s product offerings, including trendy fashion items starting at just INR 199 (approximately USD2.30), have quickly caught the attention of Indian consumers.

Initially, Shein’s services will be available only in major cities like Delhi, Mumbai, and Bengaluru, with plans to extend nationwide in the near future. This comes after a ban in 2020 when India prohibited Shein along with dozens of other Chinese apps due to data security concerns, following a surge in tensions with China over a border dispute. The ban left a gap in the Indian market, which local retailers later filled with their own fast fashion offerings.

Despite the ban, Shein maintained its global presence, becoming one of the largest fast fashion retailers worldwide. Its return to India comes at a time when the brand is positioning itself to leverage the country as a key supplier for its global operations, training local garment manufacturers and promoting textile exports. This relaunch is seen as a rare exception to India’s broader policy of banning Chinese apps, which included other popular platforms like TikTok and PUBG.