India is on the brink of signing a significant defence agreement with US-based Shield AI that would enable the local manufacturing of the advanced V-BAT vertical take-off and landing (VTOL) combat drones. The deal is part of India’s emergency procurement programme worth 4.5 billion dollars, launched in response to urgent defence requirements following Operation Sindoor.
The Indian Air Force is likely to procure an initial batch of V-BAT drones for an estimated 35 million dollars under the emergency acquisition route. In parallel, a larger 90 million dollar joint venture between Shield AI and India’s JSW Defence is close to being finalised. This agreement is expected to include a full transfer of proprietary V-BAT drone technology to India, laying the foundation for large-scale production within the country.
JSW Defence is preparing to invest the full 90 million dollars over the next two years, with 65 million to be deployed in the first year. The investment would focus on establishing manufacturing infrastructure, training skilled personnel, and implementing global compliance protocols required for defence exports and operations.
The V-BAT drone is designed for high-end intelligence, surveillance, and reconnaissance missions. It features a unique combination of ducted-fan VTOL capability and fixed-wing endurance, making it suitable for a wide range of missions. Currently in use by the United States Marine Expeditionary Units and other international forces, the V-BAT is valued for its operational flexibility and rapid deployability in complex environments.
Once signed, the agreement is expected to position India as a regional hub for V-BAT drone production. Local manufacturing is likely to reduce procurement timelines, lower costs, and boost India’s defence self-reliance.
Officials familiar with the matter say the proposed deal reflects a larger shift in India’s defence strategy, moving from direct imports to co-development and domestic production of high-end military technologies. If concluded, it would mark a major milestone for the Make in India initiative in the defence sector and set a precedent for future tech-transfer agreements involving advanced unmanned systems.
