India Becomes the 5th Largest Military Spender in the World

India’s Defense Spending Sees Significant Growth

Amid rising global arms competition, India has made a significant leap in defense spending. According to the latest report by the Stockholm International Peace Research Institute (SIPRI), India became the fifth-largest military spender in 2025 with a defense budget of $92.1 billion.

India’s defense expenditure recorded an increase of 8.9% compared to the previous year.

Global Military Spending Reaches Record High

The report states that global military spending reached a record $2.89 trillion in 2025, marking the 11th consecutive year of growth.

India-Pakistan Conflict Impact

SIPRI highlighted the brief but intense conflict between India and Pakistan in May 2025 as a major factor contributing to increased regional defense spending.

The conflict involved the use of fighter jets, drones, and missiles. Following this, India increased its defense budget, while Pakistan also raised its military spending by 11% to $11.9 billion.

Pakistan also placed new orders for aircraft and missiles from China, further boosting its defense expenditure.

Top 5 Military Spending Countries (2025)

• United States
• China
• Russia
• Germany
• India

These five countries together account for 58% of global military spending, totaling approximately $1.686 trillion.

Rising Military Burden Worldwide

The global “military burden” (defense spending as a percentage of GDP) has reached 2.5%, the highest level since 2009.

On average, countries are allocating 6.9% of their total budgets to defense, which translates to approximately $352 per person globally.

US Decline, Europe Sees Surge

In a notable shift, US defense spending declined by 7.5% to $954 billion, largely due to reduced military aid packages to Ukraine. However, the US defense budget is expected to exceed $1 trillion again in 2026.

Meanwhile, Europe’s defense spending rose by 14% to $864 billion, driven by the Ukraine war and rapid military modernization among NATO countries.

Rapid Growth in Asia

Defense spending in Asia and Oceania increased by 8.1% to $681 billion. China raised its military budget by 7.4% to $336 billion, marking the 31st consecutive year of growth.

Mixed Trends in the Middle East

The Middle East showed mixed trends, with a slight overall increase but declines in some countries.

• Israel’s defense spending fell by 4.9% to $48.3 billion
• Iran’s spending declined for the second consecutive year to $7.4 billion

Future Outlook

According to SIPRI, global crises, wars, and geopolitical tensions are likely to keep defense spending on an upward trajectory in 2026 and beyond.