D2C x Budget 2026

Hey readers,

Welcome to the sixteenth edition of D2C Cents!

This edition? We talk about Budget 2026.

So the Finance Minister dropped Budget 2026 last week, and the D2C WhatsApp groups went quiet. A few founders glanced at the headlines, saw nothing about GST cuts or direct subsidies, and moved on.

Big mistake.

Previous budgets threw subsidies at you and called it support. This one?

The government quietly removed three bottlenecks that have been choking D2C growth for years.

And if you're not acting on at least two of these, you're literally leaving money on the table.

Every D2C founder has lived this.

You know that soul-crushing moment when you ship ₹20 lakhs worth of stuff to a client, and they cheerfully tell you "payment in 60 days"?

Until then, your money is locked.

You struggle to restock products.
Marketing slows down.
Growth plans get delayed.

Budget 2026 just fixed this, and barely anyone noticed.

What changed: The government basically said "we'll back you"

The government announced something called CGTMSE credit guarantee for invoice discounting on TReDS. Sounds bureaucratic, right?

Four Big Changes to TReDS:

1. CGTMSE Credit Guarantee
CGTMSE (government credit guarantee fund) now backs these guys. If your buyer ghosts, the government covers part of the financier's loss.

2. Your government clients have to use TReDS now
Every government company buying from you has to pay through this system. Over ₹7 lakh crore is already moving through it. This isn't just a good to have, it's mandatory.

3. The government shares your purchase history with lenders
If you're selling to government buyers through GeM (government marketplace), your order history gets shared with TReDS financiers. They can see you're legit. Faster approvals and lower rates.

4. Your invoices can be traded like stocks now
TReDS receivables can be converted into securities and sold in a secondary market. Sounds technical, but it means more liquidity, faster cycles, better rates for you.

Indian has moved from "show me your assets" to "show me your invoices"

India's moving from collateral-based lending (mortgage your property) to invoice-based financing (your receivables are the asset). This is massive for D2C brands that don't own factories or land.

Is compliance stopping you? There's a new Corporate Mitras Programme where CA/CS/CMA institutes will train para-professionals in smaller towns to help MSMEs with paperwork at affordable rates. So the "too complicated" excuse just got weaker.

Are You Ready for Ownership Capital? The government also announced a ₹10,000 crore SME Growth Fund focused on creating "Champion MSMEs" and a ₹2,000 crore top-up to the Self-Reliant India Fund for micro enterprises. Both provide equity support, meaning you're not just getting working capital loans, you're getting access to growth capital if you hit certain criteria (yet to be announced).

The budget is finally treating working capital like oxygen, not a luxury. And if you're still waiting 60 days for payments without exploring TReDS, you're competing with one hand tied behind your back.

For years, if you tried shipping anything over ₹10 lakhs internationally via courier, you hit a wall. 

Budget 2026 removed it completely.

Say you're selling jewelry. A customer in the US orders ₹15 lakhs worth of pieces.

Under old rules:

• Split into two shipments

• Pay courier fees twice

• File customs paperwork twice

• Pray both packages clear without issues

• Watch your logistics cost jump 30-40%

Now? Ship it as one package.

If you are into electronics

BCD (Basic Customs Duty) was removed on microwave oven parts and other electronic components, making local manufacturing more competitive. 

Even better, the ₹40,000 crore PLI for Electronics Components was doubled from the previous allocation. If you're in electronics, gadgets, or smart home products, this means locally sourced components at competitive prices. 

Mobile exports increased 8x in 4 years under PLI, the playbook works!

For home appliances brands, there's a ₹1,004 crore White Goods PLI for air conditioners and LED lighting. Partner with PLI beneficiaries for better sourcing and you immediately improve your unit economics.

Personal import duty problem? It was slashed from 20% to 10%, reducing the cost advantage of gray-market imports. More level playing field for you. Now go compete internationally.

And if you're moving serious volumes? The Coastal Cargo Promotion Scheme Ship by sea instead of trucks. It reduces logistics costs by 20-30% and emissions by 40%. 

And if you're expanding beyond metros? Pay attention to City Economic Regions (CER). They are pumping ₹5,000 crore per region allocated for Tier-II/Tier-III cities over 5 years. New consumption markets are being built with infrastructure funding. Follow the infrastructure money, and you'll find your next growth markets.

If you're in fashion, footwear, or textiles, Budget 2026 has specific, tangible benefits you need to act on.

Win #1: Duty-Free Import Benefits Extended

The government extended duty-free import benefits to shoe uppers (used to be only finished footwear). If you're sourcing specialized inputs for export, you're not paying import duty anymore.

Win #2: Export Timeline Extended from 6 Months to 12 Months

This is massive for working capital management, and almost no one's talking about it.

What this means:

• Way better working capital management

• Less compliance panic

• Seasonal brands can actually plan properly

Win #3: Integrated Textile Sector Programme (Five Sub-Components)

The government rolled out five programs under one umbrella:

And there's more. The government also announced the Corporate Mitras Programme, where professional institutions (ICAI, ICSI, ICMAI) will train para-professionals in Tier-II and Tier-III towns to help MSMEs meet compliance at affordable costs. If you're an apparel brand scaling into smaller cities, this reduces your operational friction significantly.

And if you're sourcing handcrafted or artisan products? SHE-Marts (Self-Help Entrepreneur Marts), community-owned retail outlets for women-led ventures, provide direct market access to rural women entrepreneurs. Distribution infrastructure being built for you.

The textile sector has always been policy-heavy and execution-light. This budget actually funds infrastructure, not just announces intent.

Budget 2026 is infrastructure-focused. Not every D2C brand benefits the same way.

Three types of D2C brands will maximize this budget:

Export-ready brands with premium products
The cap is gone. If you've been splitting shipments or avoiding big international orders, your ceiling just disappeared. Jewelry, electronics, bespoke furniture, luxury anything—go.

Brands drowning in receivables
If you're selling B2B (especially to government or corporates) and your cash is stuck for 60-90 days, TReDS is your lifeline. Register this week. Not next month. This week.

Manufacturing brands in textiles, electronics, food
PLI schemes + cluster upgrades + longer export windows = you can now compete on quality and price. That's rare. Use it.

And if you're building tech-enabled D2C with AI-driven personalization or supply chain optimization? The ₹20,000 crore Deep Tech R&D Fund aims to create 1,000 unicorns by 2030. This is equity-based funding for AI, quantum computing, and biotech startups.

Who loses?

Beauty and personal care. Everyone wanted GST rationalization (still 18%). Didn't happen. There's some pharma PLI benefit for ingredients, but it's indirect.

Budget 2026 didn't give you any advantages. It just removed disadvantages.

See you next edition - same time, deeper insights.

Until then, keep building strategically.
Abhishek