India is planning to buy advanced combat drones from a US company and also build them in the country.
This move will boost the Indian Air Force’s strength and help make India a hub for drone manufacturing through a partnership between JSW Defence and Shield AI.
India’s First Drone Tech Transfer with Shield AI
India is planning a big move in its defence strategy by considering a deal for advanced combat drones that would also be made locally.
According to a report, the Indian Defence Ministry is in advanced talks with US-based company Shield AI to buy and improve its V-BAT combat drones for the Indian Air Force (IAF).
This is part of a $4.5 billion emergency procurement program launched after Operation Sindoor.
What makes this deal stand out is the plan to not just import these drones but also manufacture them in India.
Shield AI will be teaming up with JSW Defence, a part of the large Indian business group JSW. Together, they aim to make India a hub for drone manufacturing.
JSW Group plans to invest about $90 million in the next two years for this partnership. Out of this, $65 million will be used in the first year to:
Set up a global compliance program
Build a manufacturing facility in India
Train Indian workers to handle and assemble the drone technology
This investment will help create a complete local supply chain and a high-tech plant in India where the V-BAT drones will be made, assembled, and tested.
The idea is to make enough drones not just for Indian forces but also to export globally on behalf of Shield AI.
For now, the Indian Air Force is expected to sign a deal worth $35 million—the maximum allowed under the emergency procurement program.
At the same time, JSW Defence and Shield AI have signed a $90 million joint venture deal to transfer the V-BAT drone technology to JSW, paving the way for Indian manufacturing.
About the V-BAT Drone:
The V-BAT is a special kind of drone with a fixed wing and vertical take-off and landing (VTOL) capabilities.
The drone can stay in the air for long durations and is designed for intelligence gathering, surveillance, and reconnaissance (ISR).
It’s already being used by the U.S. Marine forces and other military units worldwide.
What makes the V-BAT unique:
It has a patented ducted fan design
It needs very little space and equipment for deployment
It can be quickly deployed in tough and hostile environments
It supports troops on the ground with real-time intelligence and surveillance
With this move, India is not only buying advanced drone technology but also setting the stage to become a major global hub for drone manufacturing in the future.



