Shein Sale in India Not Banned: Govt Clarifies in Lok Sabha

New Delhi, Dec 17 (PTI) Sale of "branded products" from Chinese online fast fashion brand Shein was not banned, though its app was blocked on June 29, 2020, Parliament was informed on Tuesday.

Shein was one of the apps to be banned by Ministry of Electronics and Information Technology (MeitY) in June 2020 after tension with China escalated on the Himalayan borders.

"Sale of Shein-branded products in India was not banned," Commerce & Industry Minister Piyush Goyal said in a written reply in the Lok Sabha.

The country's leading retailer Reliance Retail Ventures Ltd (RRVL) through its subsidiary RRL (Reliance Retail Ltd), has entered into a technology agreement with Roadget Business Pte Ltd, which owns Shein based in Singapore to develop an indigenous e-commerce retail platform, he said.

This platform is intended to create a network of local manufacturers and suppliers who will manufacture products under the brand Shein and sell them domestically and globally.

"It is expected that this will help in the growth of the Indian textiles manufacturing sector, including local handicraft and create significant employment," said Goyal.

Ministry of Textiles after consultation with MeitY, which in turn consulted Ministry of Home Affairs, conveyed no objection to the proposal of RRVL, he added.

Almost three years after getting banned in India, Shein had signed a partnership with Reliance Retail in 2023.

"The licence agreement covered the protection that ownership and control of the platform will always remain with RRVL through its wholly-owned subsidiary," said Goyal adding "as per the agreement, at all times, the platform will be hosted on infrastructure in India and all platform data will remain in India with Shein having no access to, or rights over, such data."

The agreement requires consenting parties to follow Indian laws and ensure localisation of infrastructure and platform data.

"RRVL is also advised to ensure compliance with all existing laws of India and security audit of complete infrastructure can be undertaken by any government empanelled cyber security auditor," he said.

Established in 2008, Shein is known for its affordable pricing and is popular among millennials for its trendy women's wear and other apparels.

In 2020, over 50 apps, including Shein, were banned by the government, which had said that these platforms posed a "threat to sovereignty and integrity" of the country.

However, Shein products were available in the online market through platforms as Amazon. The issues were also taken before the Delhi High Court.