India ranked as the world's fifth-largest military spender in 2025, according to a report by the Stockholm International Peace Research Institute cited by Hindustan Times. With an expenditure of $92.1 billion, India accounted for 3.2 per cent of global military spending, placing it behind the United States, China, Russia and Germany.
The report noted that India's defence spending rose by 8.9 per cent compared to the previous year. The increase came in part during heightened tensions, including the launch of Operation Sindoor against Pakistan, when emergency procurements were made to maintain operational readiness.
Also Read | Heatwave triggers spike in Delhi fires, firefighter injured in NW blaze
Neighbours raise defence budgets
The data shows a broader regional trend of rising military expenditure. China, the world's second-largest military spender, increased its budget by 7.4 per cent to $336 billion. Pakistan also saw a rise of 11 per cent in its military spending, reaching $11.9 billion and ranking 31st among the countries listed.
Globally, defence spending surged significantly. The top three military spenders, the USA, China and Russia, spent a combined $1,480 billion, or 51 per cent of the global total, the report said, adding that global military expenditure increased to $2,887 billion in 2025.
"The main contributor to the global increase in military spending in 2025 was a 14% rise in Europe to $864 billion. Spending by Russia and Ukraine continued to grow in the fourth year of the war in Ukraine, while ongoing rearmament efforts by European NATO members led to the sharpest annual growth in spending in Central and Western Europe since the end of the Cold War," the report said.
Shift in arms imports and suppliers
A separate Sipri report highlighted a decline in India's arms imports by 4 per cent between 2016–20 and 2021–25. Despite this, India remains the world's second-largest importer of military equipment, accounting for 8.2 per cent of global imports.
The report on "Trends in International Arms Transfers" noted that India's procurement patterns are influenced by its tensions with China and Pakistan. It also pointed to a gradual shift away from Russia toward Western suppliers such as France, Israel and the United States, although Russia continues to hold the largest share.
Also Read | Mumbai-Solapur Vande Bharat coach derails while entering Pune station, no one hurt
Higher Budget allocation for defence
India has also stepped up its defence allocation in the Union Budget for 2026–27. On February 1, the government earmarked ₹7.85 lakh crore for defence, marking an increase of over 15 per cent. This includes a capital outlay of Rs 2.19 lakh crore aimed at strengthening military capabilities through acquisitions such as fighter aircraft, warships, submarines, artillery systems and unmanned platforms.
