Key Highlights:
✔ Historic Tech Transfer: India close to securing a rare full-technology transfer deal with US firm Shield AI for V-BAT drones.
✔ $90M Joint Venture: JSW Defence to invest heavily in local production, aiming to make India a global manufacturing hub.
✔ Combat-Ready Drones: The V-BAT is a cutting-edge VTOL drone used for ISR missions, special ops, and frontline military support.
India Poised to Manufacture US-Origin Combat Drones Domestically in Landmark Deal
In a major boost to India’s defence indigenization efforts, the country is nearing a historic agreement with American defence tech firm Shield AI to locally produce advanced V-BAT combat drones—a rare instance of full technology transfer in India’s military procurement history.
According to reports, the deal falls under a $4.5 billion emergency procurement initiative launched post-Operation Sindoor. The Defence Ministry is in advanced discussions with Shield AI to supply upgraded V-BAT drones to the Indian Air Force (IAF), alongside establishing a domestic production line through a joint venture with JSW Defence, a subsidiary of the JSW Group.
The initial contract, valued at $35 million (the upper limit for emergency procurement), will cater to immediate IAF needs. However, the broader collaboration is far more ambitious—a $90 million joint venture agreement includes complete transfer of technology (ToT), enabling large-scale manufacturing, assembly, and testing of V-BAT systems within India.
JSW’s Major Investment & Global Ambitions
As part of the JV, JSW Group will invest $90 million over two years, with $65 million allocated in the first year alone. These funds will facilitate:
- Setting up state-of-the-art manufacturing facilities.
- Implementing a global compliance program.
- Training Indian personnel to handle licensed technology.
The long-term vision extends beyond domestic requirements—India aims to become a global production hub for the V-BAT, which is already deployed by elite forces like the US Marine Expeditionary Units.
Why the V-BAT is a Game-Changer
The V-BAT is a vertical take-off and landing (VTOL) drone with fixed-wing endurance, designed for high-risk intelligence, surveillance, and reconnaissance (ISR) missions. Its unique ducted design ensures minimal logistical burden while enabling rapid deployment in diverse combat scenarios—from special operations to infantry and artillery support.
A Strategic Shift in India’s Defence Approach
If finalized, this deal will mark a pivotal shift from India’s traditional reliance on outright defence imports to co-development and localized production of cutting-edge military systems. It not only enhances self-reliance (Atmanirbharta) but also strengthens Indo-US defence ties in an increasingly volatile geopolitical landscape.
Stay tuned to AlwaysFirst for further updates on this groundbreaking development.
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