India is set to begin local production of V-BAT combat drones following a rare technology transfer deal with US-based Shield AI, in partnership with JSW Defence. This initiative involves not only procurement for the Indian Air Force (IAF), but also a full-fledged technology transfer and the establishment of a joint venture—enabling large-scale indigenous manufacturing, assembly, and testing of the V-BAT system within India.
India to Locally Build V-Bat Drones in Tech Transfer Deal
Key details of the agreement:
- The move is part of a $4.5 billion emergency procurement program launched after Operation Sindoor, with an initial IAF contract expected to be worth about $35 million.
- The JSW Group will invest $90 million over two years, with $65 million allocated to the first 12 months to create compliance programs, set up production facilities, and train local personnel on the licensed tech.
- The plan aims to make India a global production hub for the V-BAT drone, which is already operated by US Marine Expeditionary Units and other international forces.
- The V-BAT is a vertical take-off and landing (VTOL) unmanned aerial system (UAS) designed for intelligence, surveillance, and reconnaissance (ISR) roles, featuring a compact, ducted-fan design for rapid deployment and minimal logistics needs.
- Indigenous production is expected to begin by late 2027, marking a significant step towards India’s defence self-reliance in high-end drone technology.
- Local manufacturing is anticipated to reduce procurement timelines, lower costs, and strengthen India’s ability to maintain and deploy these drones independently.
This tech transfer deal is noteworthy for its scope, as it not only enhances India’s immediate operational capabilities, but also positions the country as a centre for advanced drone production, training, and support services over the long term.
