Shield AI, a leading American defence technology firm, has announced a significant milestone in its engagement with the Indian Army. The company's V-BAT vertical take-off and landing (VTOL) reconnaissance unmanned aerial system (UAS) has been selected for procurement under a dedicated programme.

This development marks a deepening of Indo-US defence collaboration in the realm of autonomous aerial platforms.

The Indian Army will receive an initial batch of V-BAT drones alongside licences for Shield AI’s proprietary Hivemind autonomy software. This software, renowned for enabling swarm operations and mission autonomy without constant human input, will be fully integrated into the V-BAT platform. Such integration promises enhanced reconnaissance capabilities, particularly in contested environments along India's northern and western borders.

V-BAT itself stands out for its tactical versatility. Capable of vertical take-off and landing, it offers a endurance of up to 13 hours and a range exceeding 100 kilometres. Equipped with modular payloads for electro-optical/infrared sensors and electronic warfare suites, the drone excels in intelligence, surveillance, and reconnaissance (ISR) roles. Its rugged design suits high-altitude operations in the Himalayas, a critical theatre for the Indian Army.

This selection aligns with India's push towards indigenous defence manufacturing under the Atmanirbhar Bharat initiative. While the V-BAT originates from the US, the deal includes technology transfer elements via Hivemind licensing. This will allow local adaptation and eventual integration with Indian systems, reducing reliance on imports for critical UAS components.

The announcement builds on groundwork laid in December 2025, when Shield AI partnered with JSW Defence to break ground on a state-of-the-art manufacturing facility in Hyderabad. This $90 million investment underscores Hyderabad's emergence as a hub for aerospace innovation, complementing facilities by HAL and Tata Advanced Systems in the region.

The Hyderabad plant will produce V-BAT units domestically, ensuring supply chain resilience and faster delivery timelines for the Indian Army. Beyond local needs, it is positioned as a global production hub, potentially exporting to US allies and Indo-Pacific partners. This dual role could position India as a key player in the international UAS market.

JSW Defence, part of the JSW Group conglomerate, brings robust manufacturing expertise to the venture. With experience in armoured vehicles and missile systems, the firm will handle assembly, testing, and localisation of V-BAT production. The partnership exemplifies the Indian government's encouragement of private sector involvement in defence, fostering competition against public sector giants like HAL.

For the Indian Army, this acquisition addresses longstanding gaps in tactical UAS capabilities. Current fleets, such as the DRDO-developed Rustom and imported Heron TP, lack the VTOL flexibility of V-BAT for rapid deployment in forward areas. Hivemind’s AI-driven autonomy further enables loitering munitions-like persistence, vital against threats from Pakistan and China.

Geopolitically, the deal strengthens the Quad framework's defence technology pillar. As tensions simmer in the Indo-Pacific, US firms like Shield AI view India as a strategic counterweight to Chinese drone dominance, exemplified by Wing Loong and CH series exports. This procurement signals New Delhi's openness to advanced Western tech amid diversification from Russian suppliers.

Economically, the $90 million outlay will generate thousands of jobs in Telangana, boosting skilled labour in composites, avionics, and software. It also aligns with India's Production-Linked Incentive (PLI) scheme for drones, which has attracted over ₹1,000 crore in investments since 2021. Local production could slash V-BAT costs by 30-40% through economies of scale.

Looking ahead, this programme could spawn follow-on orders for variants like the V-BAT LE, optimised for maritime surveillance. It may also catalyse joint R&D on hypersonic ISR drones, leveraging DRDO’s expertise. For Shield AI, India represents its largest non-US market, with potential expansion to the Navy and Air Force.

The V-BAT selection and Hyderabad facility herald a new chapter in India's drone warfare posture. By blending American innovation with local manufacturing, the Indian Army gains a force multiplier, while bolstering national self-reliance.

IDN (With Agency Inputs)