- India ranked fifth globally in military spending with $92.1 billion in 2025, an 8.9% increase
- India accounted for 3.2% of global military expenditure, behind the US, China, Russia, and Germany
- Global military spending rose 2.9% to $2,887 billion, with Europe and Asia-Oceania leading growth
India's Defence Expenditure: India is the world's fifth-biggest military spender. According to the latest report by the Stockholm International Peace Research Institute (SIPRI), which tracks global defence trends every year, India spent $92.1 billion on defence in 2025.
This is an 8.9 per cent jump from the previous year. The country accounted for 3.2 per cent of total global military expenditure. Only four countries spent more: the United States, China, Russia, and Germany.
The spike came in a year when India launched Operation Sindoor against Pakistan and carried out emergency procurements to remain battle-ready.
Interestingly, India stood at the fifth spot in the ranking released last year (for 2024) as well.
Top Military Spenders In 2025
Together, the top three - US, China, Russia - spent $1,480 billion, or 51 per cent of the global total.
Where Pakistan & China Stand
India's neighbours also raised spending.
- China remained No. 2 globally with $336 billion.
- Pakistan increased spending by 11% to $11.9 billion.
- Pakistan ranked 31st among the 40 countries SIPRI tracked.
- SIPRI said India's arms imports and spending patterns are largely driven by tensions with China and Pakistan.
Global Military Spending Hits Record
World military expenditure touched $2,887 billion in 2025. That is a 2.9 per cent rise from 2024. It equals 2.5 per cent of global GDP - the highest share since 2009.
The biggest driver? Europe.
- Europe's spending jumped 14% to $864 billion
- Asia-Oceania spending rose 8.1% to $681 billion
NATO countries such as Belgium, Spain, Norway, Denmark, Poland and Canada saw sharp increases. Germany's 24% rise pushed it to fourth place globally.
India's Arms Imports Fall, But Still No. 2 Buyer
In March, SIPRI released another report on arms transfers. It showed India's arms imports fell 4 per cent between 2016-20 and 2021-25. Yet, India remains the world's second-largest arms importer, accounting for 8.2 per cent of global imports.
| Period | Share of imports from Russia | Trend |
| 2011-15 | 70% | Heavy dependence |
| 2016-20 | 51% | Reducing |
| 2021-25 | 40% | Diversifying |
As per the report, India is gradually shifting away from Russia and buying more from France, Israel and the United States. Still, Russia remains the single largest supplier.
Budget Push After Operation Sindoor
On February 1, 2026, the government sharply raised allocations. In the Union Budget for 2026-27, India set aside Rs 7.85 lakh crore for defence -- a 15+ per cent increase. Of this, Rs 2.19 lakh crore is capital outlay. The money will go into:
- Fighter jets, transport aircraft, helicopters
- Warships and submarines
- Artillery guns, missiles, rockets
- Drones and unmanned systems
- Smart weapons and surveillance systems
The message is clear: modernisation and readiness. Meanwhile, SIPRI researchers say 2025 reflects a global rearmament phase.
- Europe is rearming due to the Russia-Ukraine war
- US allies in Asia like Japan and Australia are spending more
- China has raised spending for the 31st straight year
- Ukraine now spends 40% of its GDP on defence - the highest in the world
