In a significant development for India’s defence and manufacturing sectors, U.S.-based AI and drone company Shield AI has partnered with India’s JSW Group to produce its cutting-edge V-BAT vertical takeoff and landing (VTOL) drone domestically.
The $90 million joint venture marks a milestone in India’s efforts to boost indigenous defence production under the Atmanirbharta initiative, aimed at self-reliance in critical sectors, says a report in breakingdefense.com.
JSW Group plans to establish an advanced facility in India to manufacture, assemble, and test V-BAT drones, a technology currently operated by the U.S. Marines. The collaboration will include the development of a local supply chain, securing intellectual property, and training Indian workers.
A Shield AI press release said the partnership would enable India to serve as a global production hub for the San Diego-based company, meeting domestic demand while facilitating international sales and maintenance.
A Step Toward Self-Reliance
This venture aligns with India’s broader strategy to shift from being one of the world’s largest arms importers to a key defence manufacturer. The Ministry of Defence recently highlighted that India, which used to import 65-70% of its defence equipment, now produces 65% domestically, with 21% of this coming from the private sector.
The V-BAT drone project represents a direct application of this strategy. By leveraging Shield AI’s advanced technology and integrating it into India’s domestic defence ecosystem, the joint venture demonstrates the country’s increasing capability to handle high-tech manufacturing and sustain cutting-edge defence solutions.
An Oct. 24 statement from the Indian Ministry of Defence noted that self-reliant manufacturing is not only about meeting India’s security needs but also about reducing dependency on external sources and strengthening national resilience.
Global Significance and Cost-Effectiveness
Brandon Tseng, Shield AI’s co-founder and a former U.S. Navy SEAL, underscored the strategic value of the V-BAT platform in the evolving global defence market. “Group 3 UAS drones like the V-BAT can accomplish the same missions as many helicopters and larger Group 5 UAS drones at a fraction of the price,” he told breakingdefense.com.
This collaboration, he added, builds on Shield AI’s investments in the U.S. while enhancing global distribution and expanding operations. The V-BAT’s versatility and AI-driven capabilities are expected to play a transformative role in both India’s and its partners’ defence strategies.
The drones are designed to handle a wide range of missions, including surveillance, reconnaissance, and tactical operations, making them a cost-effective alternative to traditional systems.
Strengthening Indian Industry
Sarjan Shah, Shield AI’s managing director for India, called the partnership with JSW Group the culmination of years of planning and negotiation. The deal, he said, aims to “transform the depth, scale, and scope of India’s indigenous capabilities in the field of military unmanned systems.”
The establishment of the V-BAT production line in India also highlights the country’s growing role as a global defence player. With a commitment to creating jobs, transferring technology, and integrating Indian suppliers into the supply chain, the joint venture reinforces India’s position as an emerging hub for defence innovation.
A Model for Future Partnerships
For India, the Shield AI-JSW partnership is more than a business deal—it’s a template for future collaborations. By encouraging foreign companies to set up production facilities within its borders, India not only gains access to advanced technology but also strengthens its industrial base and reduces reliance on imports.
As the nation positions itself as a defence manufacturing powerhouse, such collaborations will likely pave the way for similar ventures in the future.
