Strengthen your UPSC exam preparation with daily IAS and UPSC current affairs

India has emerged as one of the world’s top five military spenders, reflecting rising geopolitical tensions and increasing focus on defence modernisation. According to the Stockholm International Peace Research Institute (SIPRI), India ranked 5th globally in military expenditure in 2025.

India’s Defence Spending Trends:

India’s military expenditure rose to $92.1 billion in 2025, registering an 8.9% year-on-year increase.

This rise was driven by heightened regional tensions, particularly with Pakistan, leading to increased spending on:

Combat aircraft

Drones and missile systems

Operational readiness and personnel costs

Revised allocations showed a sharp increase in capital expenditure, especially for air force modernization and defence procurement.

Global Military Spending Scenario:

Global military expenditure reached a record $2.887 trillion in 2025, marking the 11th consecutive year of growth.

Top military spenders:

USA

China

Russia

Germany

India

Together, these countries accounted for a major share of global defence spending. Rising conflicts such as the Russia–Ukraine war and regional tensions in Asia and the Middle East have significantly influenced defence budgets worldwide.

Regional Security Dynamics:

India’s increased defence spending is closely linked to:

India–Pakistan tensions (2025 conflict scenario)

China’s military modernization

Growing use of advanced warfare technologies (drones, missiles)

Pakistan also increased its defence spending (around $11.9 billion), highlighting an ongoing regional arms competition.

India’s Military Burden:

Defence expenditure: ~2.3% of GDP

Share in global spending: ~3.2%

Compared to countries like Russia (higher % of GDP), India maintains a moderate military burden, balancing defence with developmental priorities.

About SIPRI:

Stockholm-based international think tank

Tracks global military expenditure, arms transfers, and conflicts

India’s Defence Profile:

Among the largest armed forces globally

One of the largest arms importers worldwide

Modernisation Focus:

Shift toward indigenisation (Atmanirbhar Bharat in defence)

Increasing procurement from France, Israel, USA

Emerging Trends in Warfare:

Drone warfare

Cyber warfare

AI-enabled defence systems

Budget Trends:

Defence budget rising steadily due to security threats + modernization needs