Industry leaders across healthcare, pharmaceuticals, senior care and clean energy sectors are making strong appeals for policy support in the upcoming Union Budget 2026-27. These stakeholders emphasize the need for sustained public investment, regulatory clarity and targeted incentives to address rising costs, demographic shifts, and global market uncertainties while strengthening India's domestic capabilities and competitiveness.

Healthcare Infrastructure and Cancer Care Priorities

Healthcare leaders are highlighting cancer care as a critical area requiring immediate attention due to its significant financial and emotional burden on Indian households. The sector is seeking comprehensive policy interventions to improve accessibility and affordability of cancer treatment across the country.

Uday Deshmukh, Chairman and Founder CEO of Onco-Life Cancer Centre, emphasized that increased spending on oncology infrastructure and reduced import duties on life-saving equipment are essential to ensure quality cancer care remains accessible and affordable nationwide. He stressed that strengthening cancer care must remain a national priority for the government.

Pharmaceutical Sector Demands R&D and Manufacturing Support

India's pharmaceutical industry is urging the government to prioritize research and development alongside domestic manufacturing capabilities to counter global trade uncertainties and geopolitical disruptions. The sector is seeking decisive policy measures to maintain India's competitive advantage in the global pharmaceutical market.

Nikkhil K. Masurkar, CEO of ENTOD Pharmaceuticals, stated that the Budget 2026-27 must adopt a forward-looking approach given intensifying US tariff uncertainties, supply-chain disruptions and geopolitical headwinds. He called for enhanced R&D incentives and sustained support for pharmaceutical MSMEs to meet global regulatory standards.

Shweta Rai, Managing Director India and Country Division Head South Asia at Bayer Pharmaceuticals, noted that previous Budget measures including duty exemptions on life-saving drugs had created positive momentum. She emphasized that sustained policy and funding support for pharmaceutical R&D, screening, diagnostics and healthcare infrastructure will be critical given the rising disease burden.

Senior Care Sector Highlights Infrastructure and Insurance Gaps

With India experiencing a significant demographic transition, senior care providers are advocating for targeted policy interventions to establish a formal and scalable care ecosystem. The sector is facing challenges related to affordability, infrastructure development, and regulatory framework.

Rajit Mehta, MD and CEO of Antara Senior Care, highlighted the need for expanding insurance coverage to include long-term care services and called for infrastructure status recognition for the sector. Ishaan Khanna, CEO of Antara Assisted Care Services, emphasized that while investor interest in senior-friendly healthcare is rising, affordability remains a key challenge requiring insurance coverage for assisted living and formal recognition of caregiving as a skilled service.

Clean Energy Sector Seeks Comprehensive Solar Support

The clean energy industry is looking to the upcoming Budget to address structural challenges across the solar value chain and strengthen India's renewable energy manufacturing capabilities. Solar manufacturers are seeking end-to-end policy support to ensure long-term sustainability and competitiveness.

Amod Anand, Co-Founder and Director of Loom Solar, outlined the need for incentives supporting upstream integration and rationalization of duties on raw materials. He also emphasized the importance of resolving the inverted GST duty structure and providing stronger policy support for commercial and industrial solar projects, storage solutions, and grid infrastructure development.

Industry Consensus on Balanced Policy Approach

Industry stakeholders across all sectors are united in their expectation for a balanced policy approach in Budget 2026-27. They emphasize the need for measures that support innovation and domestic capacity building while maintaining focus on affordability, accessibility, and long-term resilience. The proposed interventions aim to align near-term industry sustainability with India's broader economic and strategic objectives, ensuring that policy support translates into tangible benefits for end consumers and strengthens the country's position in global markets.

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.