Startups and venture capital firms are pushing for a favorable tax regime and increased domestic capital availability in the upcoming Budget. Siddarth Pai from 3one4 Capital emphasized the need for tax parity between foreign and domestic funds to attract foreign investors to Indian alternative investment funds (AIFs). Padmaja Ruparel of the Indian Angel Network suggested incentivizing banks and pension funds to invest alongside the government through fund of funds to boost AIF growth. Anirudh A Damani advocated for a sovereign-backed fund of funds anchored by SIDBI, while startups also seek tax relaxation on employee stock ownership plans (Esops) to enhance talent retention.