The Indian Army is set to enhance its intelligence, surveillance, and reconnaissance (ISR) capabilities through the procurement of V-BAT autonomous drones from the US-based firm Shield AI. This move signifies a strategic shift in India's defense procurement, emphasizing indigenous production and technological self-reliance.
The procurement is taking place under India's $4.5 billion emergency procurement program, initiated after Operation Sindoor to address urgent defense needs. The Indian Air Force (IAF) is expected to acquire an initial batch of V-BAT drones via an emergency acquisition route, estimated at $35 million. This initial contract is within the upper threshold of India's emergency purchase ceiling.
A more extensive joint venture between Shield AI and JSW Defence, an Indian defense company, is nearing finalization, with an investment of $90 million. JSW Defence will allocate the entire investment over the next two years, with an initial outlay of $65 million in the first year. This joint venture aims to facilitate a complete transfer of V-BAT drone technology to India, paving the way for large-scale domestic production. The investment will focus on establishing manufacturing infrastructure, training skilled personnel, and integrating global compliance protocols essential for defense exports and operations.
The V-BAT is a vertical take-off and landing (VTOL) drone engineered for high-end ISR tasks. Its combination of ducted-fan VTOL capabilities and fixed-wing endurance makes it suitable for diverse operational missions. Unlike traditional UAVs, the V-BAT operates with minimal ground infrastructure and can be deployed in regions where helipads are scarce. It is currently utilized by U.S. Marine Expeditionary Units and other international forces, prized for its operational flexibility and rapid deployability in complex environments. The drone is equipped with AI-enabled systems that ensure reliable operation even in GPS-denied or electronically jammed conditions.
This agreement marks a significant transfer of military drone technology from the United States to India, shifting from imports to indigenous production and co-development of advanced defense platforms. Once the agreement is finalized, India will be positioned to manufacture V-BAT systems locally, potentially becoming a global production hub for the drones. The imported drones are expected to be sourced as early as the first half of 2026, with locally manufactured V-BAT drones potentially being produced from JSW Defence's assembly line by the end of 2027. This initiative reflects India's maturing defense ecosystem and pursuit of technological sovereignty.
