Piyush Goyal Assures Data Protection as Shein Partners with Reliance Retail for India Re-entry
Union Commerce Minister Piyush Goyal has reassured the Indian Parliament that Chinese e-commerce giant Shein will not have access to any data collected from Indian users as part of its upcoming re-entry into the Indian market. In a statement to Parliament, Goyal clarified that Shein, which is planning to resume its operations in India through a partnership with Reliance Retail, will comply with stringent data protection rules that ensure all customer data remains within Indian borders.
As per the agreement between Shein and Reliance Retail, Goyal explained that the platform will be hosted entirely on Indian infrastructure. This means that all data, whether personal or non-personal, generated through the platform—including any information collected from Indian customers—will be stored and processed within India. Shein, the minister confirmed, will have no access to or rights over this data. This assurance aims to address concerns related to data security and privacy, especially given Shein’s history and its parent company’s operations based in China.
The issue of data privacy has been a contentious topic for years, particularly with regard to foreign companies operating in India. As more businesses shift towards digital platforms, ensuring that sensitive user information remains secure and is not exploited by foreign entities has become a key concern for both the Indian government and consumers. Goyal’s statement underlines India’s focus on safeguarding personal data and enforcing robust data governance regulations.
Further addressing queries from Congress MP Sasikanth Senthil, Goyal confirmed that the licensing agreement between Reliance Retail and Shein clearly stipulates the localization of both the infrastructure and platform data. This means that the app, website, and all operational data generated through Shein’s platform in India will be processed exclusively within the country, making it subject to local laws and regulations.
This move also signals India’s growing emphasis on data sovereignty, a concept that calls for data generated within a country to be stored and processed under the jurisdiction of that country. India’s new data protection bill, which is currently under consideration, is expected to introduce even stricter rules on data privacy and cross-border data transfers. The government’s stand on data localization in Shein’s case can be seen as a precursor to more stringent policies that might be enforced in the near future.
The partnership between Reliance Retail and Shein is significant for both companies. Reliance Retail, which is one of India’s largest and most diversified retail giants, stands to benefit from Shein’s vast catalog of affordable fashion, which has a strong appeal to India’s young, tech-savvy consumers. For Shein, re-entering India’s market offers a lucrative opportunity to tap into one of the world’s largest and fastest-growing e-commerce markets. However, both parties will have to navigate India’s increasingly strict regulatory landscape on data privacy, especially in the wake of global concerns regarding data breaches and misuse by Chinese firms.
Goyal’s assurance on data localization has aimed to calm any apprehensions regarding Shein’s re-entry, but it also highlights India’s growing commitment to establishing a strong legal framework around digital business operations. With tech giants facing increasing scrutiny worldwide over privacy issues, India’s approach to data sovereignty will likely set a precedent for how other countries handle foreign digital companies operating within their borders.
In conclusion, Piyush Goyal’s statement underscores the government’s commitment to data security and privacy while facilitating business partnerships. As Shein prepares to re-enter India through Reliance Retail, both companies must adhere to India’s data localization requirements, ensuring that Indian consumer data remains secure and under local control. This agreement sets an important precedent in balancing economic growth with data privacy protections in India’s evolving digital landscape.
