MoD holds talks with US firm Shield AI for AI-powered VTOL drones for IAF; JSW Defence to Lead $90M Local Production Drive

 In a significant step toward bolstering its unmanned aerial capabilities, the Ministry of Defence (MoD) is reportedly in advanced talks with US-based Shield AI to acquire its cutting-edge V-BAT autonomous vertical take-off and landing (VTOL) combat drones for the Indian Air Force (IAF). The development is part of India’s ongoing push to adopt advanced, AI-driven combat technologies while simultaneously boosting domestic defence production.

Supporting this initiative, JSW Defence, a subsidiary of the JSW Group, has signed a strategic partnership with Shield AI to locally manufacture the V-BAT drone platform in India. The collaboration is expected to bring high-end drone manufacturing under the ambit of India’s ‘Atmanirbhar Bharat’ and ‘Make in India’ policies.

$90 Million Investment for Indigenous Production

JSW Defence has committed an investment of approximately $90 million over the next two years, with $65 million to be infused within the first 12 months. This will be directed toward building a domestic ecosystem for V-BAT manufacturing, including setting up facilities for assembly, testing, operator training, and maintenance, repair and overhaul (MRO).

According to company officials, this facility will not only serve Indian defence needs but also emerge as a global production hub for Shield AI’s export markets, cementing India’s status as a rising defence manufacturing powerhouse.

V-BAT: Game-Changing VTOL Drone for Combat and ISR

The Shield AI V-BAT (designated MQ-35) is a Group 3 UAV (unmanned aerial vehicle) designed for Intelligence, Surveillance, and Reconnaissance (ISR) missions and combat support. Its innovative ducted-fan VTOL design enables it to take off and land vertically like a helicopter, then transition to fixed-wing horizontal flight for long-duration missions.

Key specifications of the V-BAT drone include:

• Endurance: Up to 10–12 hours

• Operational Altitude: Up to 6,100 meters

• Wingspan: ~2.95 meters | Length: ~2.7 meters

• Max Takeoff Weight: ~57 kg (including 11+ kg payload)

• Crew Requirement: Operable by a two-person team

• Deployment Time: Fully mission-ready in under 20 minutes

The V-BAT is powered by Shield AI’s proprietary Hivemind autonomy stack, which allows it to operate in GPS- and communications-denied environments. This makes it ideally suited for contested battlefield conditions where electronic warfare may otherwise cripple conventional drone systems.

Combat-Proven, Globally Deployed

The V-BAT system has already been deployed by several U.S. military branches, including the Marine Corps, Navy, and Special Operations Command. It has also been used in Ukraine, where it demonstrated its ability to function under extreme electronic warfare conditions. Shield AI claims that its drones successfully penetrated highly jammed areas to carry out real-time reconnaissance and surveillance.

The Japan Maritime Self-Defense Force is also adopting the V-BAT, marking the drone's growing international footprint. Deliveries for Japan’s naval fleet are expected to begin in early 2025.

India’s Strategic Shift to AI-Driven Warfare

The acquisition aligns with India’s broader defence modernization goals, particularly in the area of autonomous systems, AI-based combat platforms, and swarm-capable drones. Shield AI’s roadmap includes developing advanced multi-drone swarming capabilities, where a single operator can command multiple V-BATs simultaneously—technology that could redefine battlefield tactics for the IAF.

If the deal progresses as expected, the V-BAT could be one of India’s first foreign-origin AI drones to be produced under full technology transfer and local assembly. Officials believe this could lead to future indigenous variants adapted for Indian operational needs.

Strategic Implications

By locally manufacturing V-BAT drones through this Shield AI–JSW Defence partnership, India aims to:

• Build an indigenous drone ecosystem

• Reduce reliance on Israeli and Chinese-origin UAVs

• Strengthen AI-based aerial warfare capabilities

• Prepare for next-generation electronic warfare and swarm operations

This proposed acquisition could mark a defining moment for India’s unmanned combat aerial systems program and position the country as a global player in high-end drone manufacturing.