India is on the verge of a groundbreaking agreement with U.S. defense firm Shield AI to locally produce V-BAT combat drones, marking a significant leap in the country's defense manufacturing capabilities. This deal includes technology transfer and a joint venture with JSW Defence, with the goal of supplying the Indian Air Force and establishing India as a global production hub for these advanced unmanned aerial vehicles.
This initiative is part of India's $4.5 billion emergency procurement plan for advanced defense technologies, launched shortly after Operation Sindoor. The collaboration with Shield AI signifies a turning point in how India procures and produces high-end military technology, with a focus on localization. The initial agreement with the Indian Air Force is valued at $35 million, the upper limit for contracts signed under the emergency procurement program. Simultaneously, JSW Defence and Shield AI have entered a $90 million joint venture for the transfer of drone technology to JSW. This joint venture could potentially lead to a larger contract from the Air Force in the future.
The imported drones are expected to be sourced as early as the first half of 2026, pending approval. Following this, locally manufactured V-BAT drones could begin production at JSW Defence's indigenous assembly line by the end of 2027.
India's military drone landscape includes Israeli-made systems like the Heron and Searcher, as well as indigenous platforms such as the Nagastra-1. These drones are integrated into various branches of the armed forces. In October 2024, India finalized a deal to acquire 31 MQ-9B Predator drones from the United States, with the first delivery expected by January 2029 and the entire batch by October 2030. These drones are expected to significantly enhance India's surveillance and reconnaissance capabilities.
Furthermore, the Indian Army is actively integrating drone technology into its battlefield operations. Exercise Drone Prahar, conducted at the military station at Rayang in Arunachal Pradesh, demonstrated the effective use of drones for intelligence, surveillance, and reconnaissance, as well as real-time sensor-to-shooter coordination and precision targeting. This exercise aimed to enhance command reach and improve situational awareness for tactical commanders by employing layered surveillance and supporting dynamic decision-making on the ground.
In addition to these developments, Apollyon Dynamics, a defense-tech startup founded by students of BITS Pilani, Hyderabad, has recently delivered indigenous unmanned aerial vehicles (UAVs) to Indian Army units in various locations. The startup specializes in designing and manufacturing custom unmanned aerial systems tailored for India's defense and surveillance needs. Their lineup includes multi-role aerial vehicles for long-range surveillance, tactical payload delivery, and high-precision kamikaze operations.
India is also making strides in developing unmanned combat aircraft, with the CATS Warrior, a combat drone designed to fly alongside fighter jets. Developed by Hindustan Aeronautics Limited (HAL) in partnership with Tata Alexi, the Warrior is part of India's combat air teaming system, aimed at integrating unmanned platforms with existing air assets.
