India is taking a bold leap in military modernization by initiating domestic production of combat drones in India, thanks to a rare and strategic defense technology transfer agreement with U.S.-based company Shield AI. This landmark deal will not only boost India’s defense capabilities but also signal a major shift in how the nation approaches high-tech military acquisitions.
According to reports, the Indian government is in the final stages of securing a game-changing partnership that allows for the local manufacturing of V-BAT drones a cutting-edge unmanned aerial system known for its VTOL (Vertical Take-Off and Landing) capabilities, long endurance, and tactical adaptability.
This development follows the launch of a $4.5 billion emergency procurement program, triggered shortly after Operation Sindoor. Within this initiative, the Ministry of Defence has prioritized the acquisition of next-generation Indian Air Force drones that can perform in extreme and complex combat scenarios.
V-BAT Drone India: A Leap in Unmanned Combat Technology
The V-BAT drone India is no ordinary piece of equipment. Developed by Shield AI, the drone features a patented ducted-fan design, making it uniquely suited for stealth, rapid deployment, and flexible operations. Its compact footprint and advanced autonomous capabilities make it ideal for both surveillance and combat in hostile terrains.
Currently deployed by elite units including the U.S. Marine expeditionary forces, the V-BAT’s arrival in India marks a significant elevation in the country’s tactical drone arsenal. The drone’s design supports ISR (Intelligence, Surveillance, and Reconnaissance) missions, frontline support, and complex operations involving special forces.
A $90 million joint venture between JSW Defence, a division of the JSW Group, and Shield AI India is part of a significant drive towards indigenization.. This partnership includes full technology transfer, enabling India to assemble, test, and mass-produce these drones on its own soil.
Combat Drones in India to Be Locally Produced at Scale
The first contract, valued at $35 million, will supply a limited number of V-BAT drones to the Indian Air Force. However, the larger vision is far more ambitious. The goal of the joint venture is to establish India as a major center for military drone manufacturing worldwide. Over the next two years, JSW will invest $90 million, with $65 million allocated for the initial 12 months. These funds will go toward setting up manufacturing facilities, training Indian engineers, and ensuring full compliance with global standards.
This India US drone deal represents more than a simple defense purchase. It demonstrates a fundamental change in India’s defense strategy, one that emphasizes co-development, technology sharing, and self-reliance.
Traditionally, India has relied heavily on direct imports for advanced military hardware. This shift toward domestic production, backed by global tech leaders like Shield AI, showcases India’s intent to reduce dependency and strengthen its industrial base.
Strengthening National Security and Economic Growth
The local production of combat drones in India will serve dual purposes: reinforcing the country’s defense infrastructure and boosting its defense economy. Thousands of skilled and semi-skilled jobs are expected to be created through this venture. Moreover, Indian companies will gain exposure to cutting-edge drone technologies, laying the foundation for future innovations in defense aviation.
The strategic implications are equally compelling. With the region experiencing rising tensions and global conflicts expanding across multiple fronts, military drones in India offer vital reconnaissance and operational advantages. These drones can swiftly monitor borders, support troops in forward areas, and provide real-time data that enhances mission success.
India is providing its troops with modern, transportable, and adaptable tools by investing in VTOL drones like the V-BAT. These drones operate where traditional systems may fail tight urban environments, rugged mountain zones, and fast-evolving combat zones.
India Steps into the Future of Warfare
India’s decision to manufacture combat drones in India through a defense technology transfer deal with Shield AI India is more than a historic agreement, it’s a strategic evolution. This move not only empowers the Indian Air Force with state-of-the-art surveillance and attack capabilities but also repositions India as a serious player in the global defense manufacturing sector.
As India scales up its ambitions, this India US drone deal could become the blueprint for future defense partnerships. With technological self-reliance becoming a national priority, and global tensions demanding rapid innovation, this joint venture places India at the forefront of next-gen military readiness.