India nears combat drone deal with US

India is evaluating a combat drone deal with a built-in localisation blueprint—potentially marking a turning point in how the country procures and produces high-end military technology.

- Shouvik Das

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 import 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 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 a $90-million joint venture (JV) deal for transfer of the drone's technology to JSW. This could later make for a larger contract for the JV from the Air Force in the long run, three people with direct knowledge of the matter told Mint.