India nears combat drone deal with US, first tech-transfer push in defence

As part of the partnership, the JSW Group will invest around $90 million in the next two years, with $65 million allocated in the first 12 months to establish JSW’s global compliance program. ( Image courtesy: JSW)

India is considering a combat drone deal with a built-in localization blueprint, potentially marking a pivotal moment in how the country procures and produces high-end military technology, according to a report by Mint.

Under a $4.5 billion emergency procurement programme launched soon after Operation Sindoor, the Defence Ministry is in advanced talks with US-based Shield AI to improve its V-Bat combat drones for the Indian Air Force, while also laying the groundwork for local manufacturing through a joint venture with JSW Defence, part of the multi-industry conglomerate JSW Group, the same publication added.

As part of the partnership, the JSW Group will invest around $90 million in the next two years, with $65 million allocated in the first 12 months to establish JSW’s global compliance program, a manufacturing facility to ensure proper technology licensing and training of manpower.

This investment will enable JSW to establish a local supply chain and create an advanced facility in India for manufacturing, assembling and testing V-BAT aircraft. This effort will enable large-scale production of V-BATs in India to serve the needs of the Indian Armed Forces and also function as a global production hub for Shield AI.

The initial deal with the Indian Air Force is set to be worth $35 million, which is the upper cap for a contract being signed under the emergency procurement programme. Meanwhile, JSW Defence and Shield AI have entered into $90-million joint venture (JV) deal for transfer of the drone's technology to JSW.

The V-BAT is a fixed-wing, vertical take-off and landing (VTOL), long endurance intelligence, surveillance, reconnaissance (ISR) platform, currently deployed by multiple armed forces around the world, including the United States’ Marine Expeditionary Units (MEUs).

It provides cutting-edge ISR functionality in a highly tactical system, capable of being forward deployed in complex and adversarial territory in order to provide a range of flexible solutions to special forces, front-line infantry, armored and artillery units. V-BAT has a unique patented ducted design with the advantage of a small logistics footprint and ease of rapid deployment.