Trouble for Pakistan and China: India’s Landmark Deal to Manufacture Advanced V-BAT Combat Drones
On July 28, 2025, India took a significant step toward bolstering its defense capabilities by nearing a groundbreaking agreement with U.S.-based Shield AI to acquire and locally manufacture V-BAT combat drones. This $4.5 billion deal, part of an emergency procurement program following Operation Sindoor, includes technology transfer and a joint venture with JSW Defence, positioning India as a potential global hub for these advanced unmanned aerial systems. With Pakistan and China heavily investing in drone technology, this move signals India’s intent to gain a strategic edge in modern warfare. Here’s an in-depth look at the V-BAT drones, their cutting-edge features, and the implications of this deal for regional security dynamics.
The V-BAT Drone: A Game-Changer in Combat
The V-BAT, developed by Shield AI, is a vertical take-off and landing (VTOL) drone designed for intelligence, surveillance, and reconnaissance (ISR) missions, as well as precision strikes in challenging environments. Its unique ducted design and AI-powered capabilities make it a versatile and deadly asset for modern warfare. Key features include:
- GPS-Denied Operation: The V-BAT can operate effectively without GPS, using machine vision and onboard AI to navigate and fix its position. This resilience against electronic warfare (EW) tactics, such as GPS jamming, is critical in contested environments like those along India’s borders with Pakistan and China.
- Long Endurance: With a range of 500 km and the ability to loiter for up to 10 hours in horizontal mode, the V-BAT supports extended missions, providing persistent surveillance and strike capabilities.
- Autonomous Operation: The drone can complete missions without continuous operator input, with a single operator capable of controlling up to five drones. Flight paths are generated autonomously in real-time, enhancing operational efficiency.
- Minimal Logistics Footprint: Its patented ducted design allows for quick deployment and a compact logistics setup, making it ideal for tactical operations by special forces, infantry, armored, and artillery units.
- Precision Strike Capability: While primarily an ISR platform, the V-BAT can be equipped with precision-guided munitions, enabling it to engage targets with high accuracy, as demonstrated in conflicts like Ukraine’s use against Russia.
These features make the V-BAT a formidable tool, offering India a technological edge over adversaries’ drone capabilities, such as China’s Cai Hong-4 and Wing Loong-II, which Pakistan also deploys.
The Deal: A Strategic Leap for India
The agreement with Shield AI comprises two key components:
- Initial Procurement: An initial $35 million contract will supply V-BAT drones to the Indian Air Force (IAF) under the emergency procurement ceiling, with deliveries expected in the first half of 2026. This responds to urgent needs highlighted by Operation Sindoor, a recent military operation underscoring the demand for advanced combat drones.
- Joint Venture and Technology Transfer: A $90 million joint venture between Shield AI and JSW Defence, a division of India’s JSW Group, will enable large-scale local manufacturing, assembly, and testing of V-BAT drones in India. This includes full transfer of technology (ToT), a rare milestone in India’s defense procurement history, aligning with the Make in India initiative.
The collaboration aims to establish India as a regional production hub for V-BAT drones, reducing reliance on imports and fostering self-reliance in defense manufacturing. The joint venture will also create opportunities for Indian companies to develop expertise in advanced unmanned systems, potentially positioning India as a global exporter of drone technology.
Strategic Context: Countering Pakistan and China
The deal comes at a time of heightened regional tensions, particularly following the India-Pakistan conflict in May 2025, which marked the first large-scale use of drones by both sides. Pakistan, supported by Chinese and Turkish drone technology, has been rapidly expanding its unmanned aerial vehicle (UAV) capabilities, with an estimated 200 medium-altitude, long-endurance (MALE) drones. China, a global leader in drone R&D, supplies Pakistan with platforms like the Wing Loong-II and has thousands of MALE and high-altitude, long-endurance (HALE) drones, such as the Hongdu GJ-11 Sharp Sword.
India’s current drone fleet, primarily consisting of Israeli-made Heron, Searcher, and Harop drones, is modest in comparison, with around 50 MALE drones in operation. The V-BAT deal, combined with India’s $4 billion acquisition of 31 MQ-9B Predator drones from General Atomics in October 2024, significantly enhances its capabilities. The MQ-9B drones, equipped with Hellfire missiles and GBU-39B precision-guided bombs, are designed for long-range ISR and strike missions, complementing the V-BAT’s tactical flexibility.
Posts on X reflect public enthusiasm for India’s drone advancements, with users highlighting the V-BAT’s potential to counter Chinese and Pakistani threats. One post noted, “BAD NEWS for China & Pakistan as India sharpens its long-range strike power,” referencing parallel efforts to develop a 900+ km range suicide drone. However, these sentiments are inconclusive and should be viewed cautiously.
India’s Broader Drone Ecosystem
India’s push for drone supremacy extends beyond the V-BAT deal. The Defence Research and Development Organisation (DRDO) and private players like IdeaForge are advancing indigenous platforms:
- CATS Warrior: Developed by Hindustan Aeronautics Limited (HAL), this “loyal wingman” UCAV, showcased at Aero India 2025, is designed to support manned fighters like the Tejas and Su-30MKI. Its first flight is slated for 2026, with capabilities for reconnaissance, kamikaze missions, and precision strikes.
- Tapas BH-201: A MALE drone by DRDO, nearing completion, aims to reduce reliance on foreign UAVs with 24-hour endurance and ISR capabilities.
- Ghatak and SWiFT: DRDO’s stealth UCAV program, with a successful SWiFT prototype test in December 2023, targets advanced combat roles.
- Private Sector Growth: Companies like IdeaForge, Tata Advanced Systems, and Garuda Aerospace are scaling up, supported by a $234 million incentive program launched in July 2025 to reduce reliance on imported components.
Additionally, HAL’s partnership with Rolls-Royce to develop engines for the CATS Warrior and DRDO’s trials of the Kaveri jet engine in Russia signal India’s commitment to self-reliance.
Challenges and Risks
While the V-BAT deal is a significant milestone, challenges remain:
- Technological Gaps: India’s indigenous drone programs, like Rustom-II, lag behind global leaders in combat capabilities. The V-BAT’s advanced AI and EW resilience will require robust integration into India’s defense ecosystem.
- Supply Chain Dependence: Despite the incentive program, India still relies on Chinese components for motors and sensors, which poses security risks. The goal is to achieve 40% local content by 2028.
- Regional Arms Race: Pakistan’s collaboration with China and Turkey, and China’s advanced drone fleet, intensify the regional drone arms race, requiring India to accelerate deployment and innovation.
Implications for Regional Security
The V-BAT deal strengthens India’s deterrence against Pakistan and China, particularly along the Line of Actual Control (LAC) and Line of Control (LoC). The drones’ ability to operate in GPS-denied environments is critical in high-altitude terrains like Ladakh, where electronic warfare is a growing threat. Their deployment will enhance India’s ISR and strike capabilities, complementing the MQ-9B drones stationed at key bases like Arakkonam, Porbandar, Sarsawa, and Gorakhpur.
The technology transfer also positions India to compete in the global drone market, projected to reach $4.08 billion by 2030 for military applications. By fostering a domestic manufacturing ecosystem, India could reduce costs, shorten procurement timelines, and potentially export drones, aligning with the Aatmanirbhar Bharat vision.
Conclusion
India’s deal with Shield AI to manufacture V-BAT combat drones marks a pivotal shift from imports to co-development, enhancing its defense capabilities and signaling trouble for regional adversaries like Pakistan and China. The V-BAT’s GPS-denied operation, long endurance, and autonomous features make it a formidable asset, while the joint venture with JSW Defence positions India as a potential drone manufacturing hub. As India integrates these drones with its growing indigenous ecosystem, including the CATS Warrior and MQ-9B fleet, it is poised to reshape the regional security landscape. However, overcoming technological and supply chain challenges will be critical to sustaining this momentum.
Disclaimer: Defense deals and regional dynamics are complex and subject to change. Investors and stakeholders should conduct thorough due diligence, and military developments should be monitored through credible sources.
Sources: The Economic Times, July 28, 2025; Mint, July 2025; India.com, July 29, 2025; The Times of Bengal, July 29, 2025; Eurasian Times, May 16, 2025; posts on X.
