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

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.