SIPRI report shows India spent $92.1 billion in 2025 as global military expenditure hits record high.
India remained the world’s fifth-largest military spender in 2025, with defence expenditure rising to $92.1 billion, according to the latest report by the Stockholm International Peace Research Institute.
The spending marked an 8.9% increase from the previous year and accounted for 3.2% of total global military expenditure. Only the United States, China, Russia and Germany spent more.
India had also ranked fifth in the previous year’s report.
The increase came amid heightened security activity, including Operation Sindoor and emergency procurements aimed at maintaining combat readiness.
Top global military spenders
The top three countries — the United States, China and Russia — together accounted for $1,480 billion, or 51% of total global military spending.
Germany’s increased defence allocation pushed it to fourth place globally.
Where China and Pakistan stand
India’s neighbours also recorded higher defence spending.
- China remained the second-largest spender globally, with $336 billion
- Pakistan increased its defence budget by 11% to $11.9 billion
- Pakistan ranked 31st among the 40 countries tracked
SIPRI noted that India’s defence spending and arms imports are largely influenced by tensions with China and Pakistan.
Global military spending hits record
Worldwide military expenditure reached $2,887 billion in 2025, a 2.9% increase from 2024. This accounts for 2.5% of global GDP — the highest level since 2009.
Europe emerged as the biggest driver of growth:
- Europe’s spending rose 14% to $864 billion
- Asia-Oceania spending increased 8.1% to $681 billion
Several NATO countries, including Belgium, Spain, Norway, Denmark, Poland and Canada, saw significant increases in defence budgets.
India’s arms imports trend
A separate SIPRI report released in March showed that India’s arms imports declined by 4% between 2016–20 and 2021–25. However, India remains the world’s second-largest arms importer, accounting for 8.2% of global imports.
India is gradually diversifying its suppliers, increasing purchases from France, Israel and the United States, although Russia continues to be its largest supplier.
Budget push after Operation Sindoor
In the Union Budget for 2026–27, the government allocated Rs 7.85 lakh crore for defence, marking an increase of over 15%.
Of this, Rs 2.19 lakh crore has been earmarked for capital expenditure, including:
- fighter jets, helicopters and transport aircraft
- warships and submarines
- artillery, missiles and rockets
- drones and unmanned systems
- smart weapons and surveillance technologies
- The focus remains on modernisation and operational readiness.
- Global rearmament phase
SIPRI researchers noted that 2025 reflects a broader global rearmament trend:
- Europe is increasing spending amid the Russia-Ukraine conflict
- US allies in Asia, including Japan and Australia, are boosting defence budgets
- China has increased military spending for the 31st consecutive year
- Ukraine is spending around 40% of its GDP on defence — the highest globally
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