Chinese fast-fashion retailer Shein has made a significant comeback in India, nearly five years after it was banned amid diplomatic tensions between New Delhi and Beijing. The company has relaunched in the country through a partnership with Reliance Retail, marking its return to one of Asia's largest retail markets.

The new Shein India Fast Fashion app, developed and launched by billionaire Mukesh Ambani's Reliance Retail, operates under stringent conditions that give Reliance complete control over operations and data. Under the partnership structure, Shein will operate purely as a technology partner, with Reliance maintaining full ownership of the platform through its subsidiary.

The arrangement requires all customer data to be stored in India, with Shein having no access rights. This move is seen as a rare exception to India's ban on Chinese apps, which has affected over 300 platforms since 2020. To secure approval, Shein agreed to unprecedented oversight measures, including regular security audits by government-approved cybersecurity firms.

Commerce Minister Piyush Goyal recently stated that the approval process involved extensive vetting by multiple ministries, including IT and Home Affairs. The arrangement aims to boost India's textile manufacturing sector while maintaining strict data sovereignty. Shein is initially offering delivery in select cities, including New Delhi and Mumbai, and plans to expand its services to across India "soon."

The products offered on the app are designed and manufactured in India by local manufacturers, with prices starting from 350 rupees ($4). The app's description greets users with "The OG is back," signaling Shein's return to the Indian market.

For Reliance, the partnership marks a departure from its traditional strategy of incorporating brands, such as Japan's Muji, into its flagship Ajio fashion app. The deal is seen as a significant move by Reliance to expand its presence in the Indian e-commerce market, which is expected to reach $200 billion by 2027.

The partnership between Shein and Reliance Retail is expected to have a significant impact on India's e-commerce landscape. With Shein's global reputation for fast fashion and Reliance's strong presence in the Indian market, the partnership is likely to disrupt the fashion retail industry in the country. The deal also sets a precedent for other Chinese companies looking to re-enter the Indian market, highlighting the importance of data sovereignty and strict oversight measures.

As India continues to grow as a significant market for e-commerce, the partnership between Shein and Reliance Retail is likely to be closely watched by industry players and policymakers alike. The deal's success will depend on Shein's ability to adapt to the Indian market and Reliance's ability to maintain strict control over data and operations.

In conclusion, Shein's relaunch in India marks a significant development in the country's e-commerce landscape. The partnership with Reliance Retail highlights the importance of data sovereignty and strict oversight measures, setting a new precedent for Chinese companies looking to re-enter the Indian market.