India is poised to finalize a landmark defense agreement with US-based Shield AI aimed at local manufacturing of the advanced V-BAT vertical take-off and landing (VTOL) combat drones. This initiative is part of India’s emergency procurement program, which has a budget set at $4.5 billion; the program was initiated to address urgent defense needs following Operation Sindoor.
Under this agreement, the Indian Air Force is expected to procure an initial batch of V-BAT drones, estimated at around $35 million, using the emergency acquisition route. Simultaneously, a larger joint venture valued at $90 million, involving Shield AI and India’s JSW Defence, is nearing completion. This partnership is anticipated to encompass a full transfer of proprietary V-BAT drone technology to India, paving the way for large-scale production of these advanced drones domestically.
JSW Defence plans to allocate the entire $90 million investment over the next two years, with $65 million earmarked for deployment in the first year. This capital will focus on building manufacturing infrastructure, training skilled personnel, and adhering to global compliance protocols necessary for defense exports and operations.
The V-BAT drone is specifically engineered for high-end intelligence, surveillance, and reconnaissance tasks. Its unique design incorporates a ducted-fan VTOL capability and fixed-wing endurance, enabling it to undertake various complex missions. The drone is already operational with the United States Marine Expeditionary Units and several international forces, cherished for its operational flexibility and quick deployability.
Once finalized, this agreement is expected to establish India as a regional hub for V-BAT drone production. The shift to local manufacturing is projected to shorten procurement timelines, reduce costs, and enhance India’s self-reliance in defense capabilities.
Officials knowledgeable about the situation indicate that this proposed deal signifies a broader transition in India’s defense strategy, from relying on imports to focusing on co-development and domestic production of advanced military technologies. Should this agreement come to fruition, it would not only represent a significant achievement for the Make in India initiative within the defense sector but also establish a precedent for future technology transfer agreements involving sophisticated unmanned systems.
