Big defence push: Israeli AI major, Indian firm sign $11 million UAV deal to build drones, says report

XTEND is the same company that had last year bagged a contract to supply the Israeli army with 5,000 assault drones.- Representative photo

• XTEND signs $11M UAV manufacturing deal with India's Rayonix Tech
• Rayonix to produce AI-enabled drones using XTEND's XOS platform
• Deal includes tech transfer to enhance India's robotics skills

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An Israel-based AI robotics firm, XTEND, has signed an $11 million manufacturing and distribution deal with India’s Rayonix Tech to produce unmanned aerial vehicles (UAVs) locally—marking a significant push to expand its AI-driven autonomy platform, XOS, into the Indian market.

According to Times of India, Rayonix will serve as XTEND’s exclusive partner in India, setting up local manufacturing, testing and distribution capabilities for AI-enabled drone systems, in line with India’s growing focus on domestic defence production and advanced unmanned technologies.

XTEND’s XOS operating system will act as the software backbone for UAVs manufactured by Rayonix in India, enabling human-guided autonomy across multi-domain robotic systems. The platform integrates AI-driven navigation, mission planning, and real-time operational control, significantly enhancing the effectiveness and adaptability of unmanned systems.

According to TOI,  XTEND is the same company that had last year bagged a contract to supply the Israeli army with 5,000 assault drones.

The agreement is part of XTEND’s broader strategy to expand its software-defined autonomy ecosystem by building regional manufacturing partnerships, enabling sovereign deployment while maintaining a unified software architecture.

“India represents one of the fastest growing defence technology markets globally, with increasing demand for sovereign manufacturing and AI-enabled autonomous systems,” Aviv Shapira, CEO and co-founder of XTEND told TOI. XTEND is currently merging with the US-listed firm JFB Construction Holdings.

According to reports, the agreement also includes a technology transfer and operational enablement component, aimed at strengthening domestic capabilities and expertise in advanced robotics and autonomous systems.

India has built a regulated drone ecosystem as of February 2026, with more than 38,500 registered drones, 39,890 DGCA-certified remote pilots and 244 approved training organisations in operation, the Press Information Bureau said in a statement in February.

According to the PIB,  drones have become an integral component of India’s military capabilities, enhancing surveillance, intelligence gathering and precision strike operations for the Armed Forces. “During Operation SINDOOR, Indian drones and loitering munitions destroyed enemy targets safely and accurately. Drones work together with air defence systems, radar networks, and command centres to protect critical infrastructure and respond quickly to threats,” the PIB statement said.