As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2026-27 on February 1, industry experts across multiple sectors are calling for a strategic shift from short-term fiscal measures to execution-focused reforms. The consensus among stakeholders is clear: India's next growth phase requires policy predictability, structural reforms, and innovation incentives rather than just capital infusion.

Infrastructure and Finance: Prioritizing Execution Over Capital

Jyoti Prakash Gadia, Managing Director of Resurgent India Limited, emphasized that India's financing ecosystem has matured significantly, particularly in infrastructure and MSME lending. However, he stressed that "capital is not the constraint today—execution certainty is." The focus should shift toward strengthening Public-Private Partnership (PPP) frameworks, viability gap funding, and Hybrid Annuity Models.

Key infrastructure reform priorities include:

• Simplified approval processes and predictable regulatory timelines
• Enhanced contract sanctity to attract domestic and global investors
• Improved valuation accountability in the Insolvency and Bankruptcy Code (IBC) framework

Gadia noted that while the IBC has successfully restored credit discipline, the next reform phase should focus on ensuring fairness and transparency in asset valuation processes.

Healthcare: Bridging the Investment Gap

Healthcare experts are advocating for substantial increases in sector allocation and a stronger emphasis on preventive care. The current healthcare spending landscape reveals significant gaps that Budget 2026 could address.

Abhishek Kapoor, CEO of Regency Hospital, highlighted that India's out-of-pocket health expenditure remains among the highest globally. He emphasized the need for investments in district hospitals, healthcare infrastructure in Tier II and III cities, and comprehensive rural healthcare programs. The focus should extend to early screening, diagnostics, and community wellness initiatives.

Shubhendra Singh, CEO of ErlySign, advocated for a dedicated National Mission on Early Cancer Detection, with targeted workplace screening programs and support for indigenous diagnostic innovations through R&D grants and government-enabled pilot programs.

Renewable Energy and Electric Mobility

The renewable energy sector is seeking targeted policy support to strengthen domestic manufacturing capabilities. Aditya Pyasi, CEO of the Indian Wind Turbine Manufacturers Association, outlined specific requirements for the wind energy sector:

• Tax incentives for testing large blades and high-capacity drivetrains
• Sustained R&D funding for innovation initiatives
• Rationalization of indirect taxes and duties on key components

Pyasi emphasized that "with the right policy support, India's wind sector can evolve into a resilient, innovation-led manufacturing hub."

In the electric mobility space, Shivam Sisodiya, Co-Founder & CEO of Bijliride, highlighted the importance of recognizing rental and subscription EV models while improving access to affordable capital. The sector requires deeper support for charging infrastructure and battery-swapping networks, along with tax incentives and localization benefits to strengthen India's EV value chain.

Technology and Education: Outcome-Driven Approaches

Ramya Chatterjee, CEO of Solitaire Brand Business, called for a fundamental shift in learning strategy, noting that "the challenge is no longer access to information, but ensuring knowledge is effectively absorbed and applied." She advocated for AI-enabled interactive ecosystems that drive measurable outcomes and bridge the gap between classrooms and workplaces.

Supply Chain and Industrial Competitiveness

Smitha Shetty, Regional Director, APAC, Achilles Information, emphasized that Budget 2026 should strengthen India's supply chains beyond short-term incentives. Key recommendations include:

• Reducing dependence on limited geographical suppliers
• Improving domestic supplier ecosystems
• Connecting MSMEs to global value chains
• Investing in logistics and climate-resilient networks

Cross-Sector Consensus

Across all industries, experts are emphasizing that India's growth trajectory requires execution certainty, preventive planning, and policy continuity. The message is consistent: capital availability is no longer the primary constraint, but predictable, risk-aware governance that aligns investments with sustainable, measurable outcomes is essential. As the Finance Minister prepares to unveil the budget, these recommendations reflect a clear consensus that India needs action-oriented policies delivering tangible results rather than just intent-based announcements.

As the government focuses on ease of doing business and trust-based tax administration ahead of Union Budget 2026-27, tax experts are calling for a comprehensive review of India's transfer pricing compliance framework. The proposed reforms aim to ease the burden on small and medium enterprises while maintaining effective tax oversight.

Expert Recommendations for Reform

Gokul Chaudhri, President – Tax, Deloitte South Asia, has urged the government to rationalize reporting thresholds and introduce de minimis exemptions. "Indian transfer pricing compliance regulations have remained largely unchanged since their introduction in 2001. With India now the world's fourth-largest economy, the compliance thresholds need to be revisited to reflect economic reality," Chaudhri said.

The key reform proposals include:

Current Framework Challenges

India's transfer pricing regulations were originally designed to address inbound cross-border transactions following economic liberalization in 2001, when India ranked as the world's 13th-largest economy. The regulatory landscape has remained static despite significant economic transformation and the growing participation of Indian SMEs in international transactions.

The compliance burden has intensified as the number of active companies in India has grown from approximately 10.30 lakh in 2015 to over 17.30 lakh in 2024. This growth mirrors India's real GDP expansion over the same period, yet reporting thresholds remain unchanged with no de minimis threshold for the Accountant's Report and local file documentation requirements starting at ₹1.00 crore for international transactions.

Global Best Practices

Several developed economies have adopted more pragmatic compliance frameworks that balance efficiency with tax certainty:

"India can take a leaf out of these jurisdictions, which have balanced compliance efficiency with tax certainty," Chaudhri noted.

Reduced Arbitrage Risk Environment

Experts argue that the introduction of the Global Minimum Tax has significantly reduced cross-border tax arbitrage risks, making stringent compliance requirements less critical for smaller and low-risk entities. "In the current global tax environment, the scope for aggressive transfer pricing is far more limited. A calibrated relaxation will not accentuate TP risk," Chaudhri explained.

Potential Impact Assessment

According to statistical assessments, implementing these reforms could deliver substantial compliance relief:

• 25-30% reduction in India's overall transfer pricing compliance burden
• Nearly 50% of foreign associated enterprises could be relieved of reporting obligations
• Significant compliance cost savings for SMEs and overseas entities
• Maintained tax safeguards given that Indian-headquartered multinationals are generally considered low risk

The proposed changes would particularly benefit the SME sector while preserving the integrity of India's transfer pricing regime, as entrepreneurial decision-making and residual profits for Indian multinationals are largely located within India.