- By Aditya Pratap Singh
- Mon, 19 Jan 2026 05:11 PM (IST)
- Source:JND
Union Budget 2026: The Union Budget for the financial year 2026-27 will be tabled in the Parliament on February 1, 2026. Meanwhile, Union Minister Nirmala Sitharaman has held various rounds of discussion with representatives of states, economists, industry leaders and other stakeholders, seeking their inputs for the upcoming budget.
Preparation for the next financial year budget is underway in full swing. Meanwhile, new-age direct-to-consumer (D2C) cosmetic brands' founders havesetn their expectations and demand from Budget 2026.
Their demand includes reform in GST, policies for innovation and scalability, and support for logistics and last-mile connectivity.
Demanding a concrete MSME policy, Mihir Jain, Sales and Marketing Director, Insight Cosmetic,s said that he is eager to see future-centric reforms in GST and MSME policy.
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"Enhanced GST structures and quicker refunds will be playing a crucial role, as they will be making it possible for the cheapest beauty brands such as ours to manage their cash flows better, cut compliance costs, and invest new money in innovation, quality and the expansion of the capacity," said Jain.
The tax changes could benefit the whole beauty industry, but especially those brands that focus on safety and clean formulations, he added.
Seeking measures that could help new-age D2C brands in their growth, Nischay Madnani, Founder, CEO, Shryoan Cosmetics, demands the implementation of a few policies that would greatly help us enhance innovation and scalability for the brand.
"Harmonisation of GST rates applicable to the cosmetics industry and personal care segment, and even more for the new D2C market entrants, will help us improve profitability and ensure that we continue to deliver affordable solutions to the market while innovating and investing in the space," Madnani said.
Currently, the high GST rates and customs duty imposed on imported specialised materials and packaging materials are hindrances to innovation and slowing us down, Shryoan Cosmetics' CEO added.
Echoing the same sentiment, Harshita Rai, Founder, The Skin Diet Company, demands incentives for R&D and formulations.
“Lower GST on clean, dermatology-led beauty products, incentives for R&D and new formulations, and simpler compliance for digital-first brands would improve capital efficiency. Better support for logistics and last-mile delivery would also help D2C beauty brands scale sustainably while protecting product quality. We are also expecting fiscal support for women-led businesses,” Rai said.
Meanwhile, Ananya Kapur, Founder, Type Beauty, said that the last few years have seen a tremendous growth in the cosmetic and beauty space, with new homegrown brands emerging with innovative products, specially designed for Indian women.
"With Budget 2026, we expect support in the form of R&D tax incentives, clearer labelling, regulatory norms, and reduced input costs that would allow emerging beauty brands to compete globally, ”Kapur said.