As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2026-27 on February 1, industry leaders across multiple sectors are calling for a strategic shift toward policies that drive long-term growth, investment, and inclusion. From real estate to startups, fashion, sports, and green tech, experts believe a pragmatic, growth-oriented approach will drive long-term economic confidence and strengthen India's global competitiveness.

Real Estate and Urban Infrastructure Drive Growth Agenda

Agadish Prasad Naik, CMD of DN Group, emphasizes that urban infrastructure investments are key to reigniting India's growth engine. "Increased spending on roads, metro rail, regional transit, and last-mile connectivity can unlock housing demand in Tier-2 and Tier-3 cities while promoting balanced regional development," he notes. Naik stresses that faster regulatory reviews and time-bound approvals will reduce project delays, lower execution risks, and boost buyer confidence.

Aditya B. Yamsanwar, Director at TOA, noted the growing resilience of Indian cities. "Recent urban infrastructure allocations and the transition of SEZs into more flexible, services-led ecosystems have pushed Indian cities into a more infrastructure-ready phase, supporting Grade-A office absorption and enabling non-traditional business districts to gain traction."

Financial Markets Seek Stability Over Spectacle

Ajay Kumar Yadav, Group CEO & CIO at Wise Finserv, cautions that investors are looking for reassurance rather than dramatic announcements. "Global uncertainty, foreign outflows, and subdued corporate earnings mean stability matters more than spectacle," he says. Yadav suggests targeted fiscal incentives linked to job creation, incremental investment, and manufacturing to revive private capex while maintaining fiscal discipline.

Sanjaya Mariwala, Executive Chairman of OmniActive Health Technologies, reinforced this sentiment, arguing that frequent changes create hidden costs for businesses. "Industry needs multi-year frameworks with clear progress reporting. Predictability backed by accountability will sustain long-term economic momentum," he emphasized.

Technology Innovation and Startup Ecosystem Support

Startup investors are pressing for procedural clarity to sustain investor confidence. Rathnakar Samavedam of Hyderabad Angels Fund calls for a Legacy Settlement Window to resolve pending Angel Tax disputes and a fast-track loss-booking mechanism. Kalyan Sivalenka from haf.vc stresses that extending tax holidays for startups and doubling down on the ₹10,000.00-crore Fund of Funds could help India emerge as a "Deep-Tech Powerhouse."

Raviteja Chivukula, CEO of Perceptyne Robots, highlights the need to transform India from a technology consumer to a technology builder. "High-capex sectors like robotics, semiconductors, advanced manufacturing, and AI need targeted capital subsidies and stronger corporate R&D incentives to accelerate scale-up," he said.

Retail, Fashion, and Sports Sectors Eye Growth Opportunities

Vishal Mehra, Co-founder of Stylox Fashion, sees the Budget as a turning point for homegrown apparel brands. "Simplified GST rates, especially for the mid-price segment, will help structured brands compete with unorganised players and imports," he explains. Mehra also calls for support for sustainable manufacturing and incentives for local sourcing.

Arjun Gupta, Founder & CEO of KragBuzz Sports, highlights India's sportswear market potential, projected to reach USD 21.25 billion. "We expect Budget support for modern sports facilities in smaller cities and incentives for domestic manufacturers to expand responsibly and offer high-quality, affordable products," he says.

Green Technology and Sustainability Focus

Shubham Vishvakarma, Founder of Metastable Materials, sees an opportunity for Budget 2026 to strengthen India's battery recycling ecosystem. "Recognising high-quality recycling outcomes and supporting downstream industries to produce battery precursors domestically can turn recycling into a dependable source of critical minerals for India's battery ecosystem," he explains.

Nitin Chitkara, CEO of MMCM, called for sustainability to be central to economic policy. "True superpower status will not be defined only by financial growth, but also by clean air, clean water, and resource efficiency," he said, advocating for GST rationalization on recycled materials and incentives for traceable recycling.

Healthcare and Agriculture Technology Integration

Prashant Krishnan, CEO of TI Medical, flagged that India's public health spending remains under 2.00% of GDP, below the 2.50% target of the National Health Policy. Abhineet Kumar, CEO & Founder of Rocket Health, warns that untreated mental health conditions cost the country billions in lost productivity.

Amit Maheshwari, Founding Investor at KhetiBuddy, urges the Budget to prioritise climate-smart agriculture and farm-level traceability. "Integrating Agri ERP and SaaS platforms with AgriStack can boost productivity, traceability, and access to sustainable finance while reducing post-harvest wastage," he says.

Industry Consensus: Targeted Reforms for Sustainable Growth

Across all sectors, the message remains consistent: Budget 2026 should focus on targeted reforms, fiscal predictability, and sector-specific support that translates policy signals into measurable long-term economic outcomes. The emphasis is on building sustainable growth infrastructure through technology adoption, sustainability measures, and streamlined compliance frameworks that align with the Viksit Bharat 2047 vision.

Tax policy experts have presented comprehensive recommendations for Budget 2026 to enhance India's mergers and acquisitions environment, particularly with the Income-tax Act, 2025 scheduled for implementation from April 1, 2026. The suggestions aim to address existing regulatory gaps and improve the ease of doing business for M&A transactions.

Fast-Track Demerger Tax Neutrality

A primary recommendation involves extending tax neutrality to fast-track demergers under Section 233 of the Companies Act, 2013. Currently, the Income-tax Act, 2025 provides tax neutrality only to NCLT-approved demergers under Sections 230 to 232, excluding fast-track demergers that enable small or closely held companies to undertake demergers without court approval.

The finance ministry's rationale for excluding fast-track demergers centers on concerns about potential valuation manipulation without court oversight. However, experts argue this approach contradicts the ease of doing business agenda, forcing genuine taxpayers to choose between transaction efficiency and tax benefits.

Contingent Consideration Clarity

Experts emphasize the need for clear taxation guidelines on earn-out, profit-linked, or contingent consideration arrangements that have become increasingly common in M&A transactions. These arrangements tie part of the sale consideration to achieving specific profitability or financial milestones.

The current legal framework lacks clarity on:

• Taxability of contingent payments
• Timing of taxation for such arrangements
• Treatment of milestone-based considerations

Foreign Company Merger Anomalies

The recommendations address existing inconsistencies in foreign company merger taxation. While foreign companies enjoy capital gains tax exemptions on direct or indirect share transfers during mergers with other foreign companies, shareholders of the amalgamating company face potential capital gains liability on share swaps.

This creates an anomaly compared to domestic mergers, which provide exemptions at both company and shareholder levels.

Capital Gains Tax Rate Concerns

The recent capital gains tax regime rationalization introduced higher long-term capital gains tax rates, which experts suggest adversely impacts investor returns and exit efficiency. The increased rates potentially drive investors toward jurisdictions with more favorable tax regimes.

Key concerns include:

• Reduced post-tax returns for investors
• Decreased competitiveness with other investment destinations
• Impact on foreign capital attraction

Experts recommend reducing capital gains tax rates, suggesting restoration of the earlier 10.00% rate to improve India's competitive position in attracting foreign investment.

Strategic Implementation Timeline

With the Income-tax Act, 2025 set for April 1, 2026 implementation, Budget 2026 represents the final opportunity to incorporate these amendments before the new framework takes effect. The recommendations aim to position India as a preferred destination for cross-border M&A activities while maintaining regulatory integrity and supporting corporate growth objectives.