Expert view: Ajay Modi, Director at Piper Serica – a Mumbai-based, SEBI-registered Category I and Category II Alternative Investment Fund (AIF), believes semiconductors, spacetech, and deeptech industries have the potential to create $500 billion to $1 trillion worth of market opportunity and shape India’s next phase of economic growth. Modi said smart money is moving into these sectors as they are becoming increasingly central to India’s economic, technological and manufacturing ambitions. Edited excerpts:
We see smart money moving into emerging sectors such as semiconductors, space tech, and deep tech. What has triggered this shift?
For the first time in decades, India is not just consuming advanced technologies—it is building them. That distinction is fundamentally reshaping where long-term capital is flowing.
A few years ago, sectors such as semiconductors, spacetech and deeptech were viewed as high-conviction bets on future possibilities.
Today, they are emerging as strategic industries that are becoming increasingly central to India’s economic, technological and manufacturing ambitions.
This shift is being driven by the convergence of multiple structural factors. The government has committed significant capital through initiatives such as the ₹1.28 lakh crore India Semiconductor Mission (ISM) 2.0, the ₹62,500 crore Mobile Phone Manufacturing Scheme, and a broader ₹2.19 lakh crore strategic package.
At the same time, Indian companies have demonstrated world-class capabilities—from successful private space mission launches to the design of semiconductor chips and the manufacturing of advanced electronic components.
These developments have strengthened investor confidence that Indian deeptech companies can build globally competitive and commercially scalable businesses.
The most compelling investment opportunities emerge when policy support, private capital and technological capability reinforce one another. That is precisely the stage India is entering today.
We believe these industries have the potential to create $500 billion to $1 trillion worth of market opportunity and shape India’s next phase of economic growth.
Do you also see traditional business families and old money diversifying into this space for the first time? Or is it only the first-generation wealth which is chasing the emerging themes?
Yes, we’re clearly seeing both cohorts now, and that’s what makes this cycle different. Traditional business families – names like Premji Invest, Catamaran, and several Gujarat and Surat-based industrial dynasties – are allocating meaningfully to emerging sectors, treating it as a natural extension of running real, operating businesses rather than a speculative departure from their legacy.
First-generation wealth is chasing these themes too, but often carries a sharper technology thesis, having built their own fortunes in the new economy.
For most UHNIs, direct exposure to deeptech, spacetech or advanced manufacturing simply isn’t accessible – the technical diligence, sector depth and ticket sizes involved are steep.
Venture funds solve exactly this problem: they pool capital, bring domain expertise, and translate lab-stage science into curated, de-risked opportunities that a family office or individual investor couldn’t easily source or evaluate alone.
What stands out across both old money and new is that most are entering this specific theme for the first time, yet with genuine conviction about where the future is headed.
This isn’t a one-off punt – it’s a deliberate diversification decision, sitting alongside real estate, equities and traditional business income as one more pillar of a well-constructed portfolio.
That combination of fresh entry and informed intent is precisely what’s making this capital more durable and better suited to the sector’s longer horizon.
Through specialised venture funds, investors are gaining access to emerging technology businesses across semiconductors, spacetech, AI and deeptech.
The portfolio spans 30+ companies across these themes, providing investors access to India’s technology-led growth story, underpinned by disciplined sourcing, rigorous diligence, and active portfolio management.
These businesses typically need a much longer runway to mature compared to sectors Indian investors are more familiar with. How is UHNI capital adapting to this longer time horizon?
The mindset of sophisticated investors has evolved significantly. A few years ago, many UHNIs expected venture investments to follow timelines similar to consumer internet or SaaS businesses.
Today, they recognise that deeptech is fundamentally different. Building semiconductor, spacetech or robotics companies involves years of engineering and customer qualification before meaningful scale is achieved – but that longer journey also creates higher barriers to entry and far more durable businesses.
What’s building patience is a clearer understanding of where the gestation actually sits. Most of the “long runway” is consumed at the lab stage, not the market stage.
Once a company crosses from lab to market with genuine product-market fit, scale-up tends to be steeper and margins more lucrative than in typical software businesses.
Deeptech solves problems that are hard to replicate, so pricing power and profitability often arrive faster once commercial traction kicks in. The patience isn’t indefinite – it’s concentrated in a defined lab-to-market phase, after which economics can turn attractive quickly.
Investors are also evaluating technology strength, founder quality, market size and competitive moat, rather than fixating on quarterly milestones.
The biggest wealth creation stories have rarely been built in three to five years – they come from backing exceptional founders early and giving them time to compound. In deeptech, patience isn’t a compromise – it’s the source of alpha.
Given the momentum around India’s ambitions in these segments, how do you see UHNI participation across this basket evolving over the next three to five years?
Over the next three to five years, I expect UHNI allocation to these segments to move from opportunistic, one-off bets to a standard portfolio line item, much like private equity or unlisted equity is today.
Government push on semiconductor manufacturing, growing founder maturity, and visible early exits will build the track record UHNIs need to commit larger, repeatable capital.
These sectors will mainstream faster through specialised venture funds than through direct stock-picking, since evaluating chip design or spacecraft engineering demands domain expertise that most individual investors don’t have.
Currently, just 20% of UHNI wealth sits in private equity and startups; as deeptech funds prove out returns, this allocation should rise meaningfully, with semiconductors, electronic components, and spacetech leading given clearer government backing.
This growing investor appetite is already reflected in our portfolio. We have so far deployed over ₹200 crore across deeptech startups, including SenseSemi, Pantherun Technologies, Six Sense Mobility, Astrogate Labs, Coratia Technologies, UbiqEdge Technologies and eNLife Research, alongside nearly ₹16 crore across spacetech companies such as Xovian Aerospace, Inbound Aerospace, and Thrustworks Dynetics, demonstrating the increasing willingness of private capital to back India’s strategic technology sectors.
Are robotics also emerging as a new investment theme as AI moves into the physical world?
Robotics is still at a much earlier stage than AI software, and that’s an important distinction.
While the technology has advanced significantly, large-scale industrial adoption is still evolving because many customers have yet to fully realise the ROI or redesign their operations around automation.
Beyond robotics deals, real value is now building in enabling components – MEMS sensors, gyroscopes, and actuators that let robots sense and balance in real-world environments.
Indian deeptech startups are building exactly this: indigenous MEMS and sensor stacks that reduce import dependence for defence and industrial robotics.
This “picks-and-shovels” layer is less glamorous than robots themselves but carries genuine strategic and margin advantages, since sensor IP is hard to replicate and sells into multiple downstream categories.
Neuromorphic chips, which mimic brain-like processing for low-power, real-time decision-making, are emerging as critical infrastructure for autonomous robots operating outside data-centre power budgets.
As defence robotics alone grew sixfold in two years, components and chips built for edge autonomy will likely see disproportionate capital inflow relative to their current visibility.
This layered structure is precisely why the space is compelling today – we’re investing before the inflection point, not after, and components sit closer to it than robots themselves, given hardware still commands 63% of global robotics spend.
The biggest opportunities lie in industrial automation, defence, drones and logistics.
The real winners won’t be robot makers – they’ll be the sensor, MEMS and neuromorphic chip businesses forming the invisible infrastructure beneath every automation platform.
Read all market-related news here
Read more stories by Nishant Kumar
Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of the expert, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
