Defence Stocks Outlook: Why Private Players Could Outperform PSU Defence Companies

India’s defence sector is witnessing a major shift, with private companies gaining a stronger role alongside established PSU defence players. While PSUs may continue to act as key system integrators for the Army, Navy and Air Force, private firms are increasingly developing their own products, absorbing advanced technologies and exploring export opportunities. Mihir Vora, CIO, TRUST Mutual Fund, explains why private defence companies could grow faster over the long term, how government support is accelerating local innovation and why defence exports may become a major growth driver. The discussion also explores the evolving defence ecosystem and investment opportunities.