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JSW Defence plans to build a new military drone factory in Hyderabad as part of a $90 million project, in partnership with US company Shield AI.
Shield AI makes drones that can think a bit for themselves. Its software acts like a built-in pilot, helping the drone fly and handle missions with less constant control from a human.
What’s taking shape: at this Hyderabad plant, JSW plans to manufacture Shield AI’s V-BAT, a mid-sized military drone.
The partnership is structured as a long-term licensing deal, which means JSW is not just assembling parts. It will get the right to use Shield AI’s technology, learn how it works through a formal transfer of know-how, and train Indian teams to build and maintain it properly.
Worth noting: JSW says it will invest ₹1,200 crore across its defence plans, and ₹320 crore of that is specifically meant for the technology transfer from Shield AI.
Why it matters is simple: Instead of importing these drones, India could make them at scale at home for the armed forces.
And if the facility grows as planned, it could also become a hub that supplies drones to other countries. Manufacturing is expected to begin by the last quarter of 2026.
