India's military spending hits $92.1B, becomes 5th largest spender

India became the world's fifth-largest military spender in 2025, with its expenditure rising by 8.9% to $92.1 billion, a new SIPRI report reveals. The surge is partly attributed to the India-Pakistan conflict in May 2025.

India, the fifth biggest military spender in the world in 2025, increased its military spending by 8.9 per cent to USD 92.1 billion, according to a report released by arms watchdog group SIPRI on Monday. The global world military expenditure reached USD 2887 billion in 2025, the 11th consecutive year of growth, and the five biggest spenders in 2025 were the United States, China, Russia, Germany and India, together accounting for 58 per cent of world military spending, at a total of USD 1,686 billion, according to new data published today by the Stockholm International Peace Research Institute (SIPRI).

India-Pakistan Conflict Fuels Spending

The India-Pakistan conflict in May 2025--which involved the use of combat aircraft, drones and missiles--pushed up military spending of India during the year, according to SIPRI's annual "Trends in World Military Expenditure" report. "Pakistan's military spending grew by 11 per cent to USD 11.9 billion in 2025. The increase was largely due to new orders for aircraft and missiles placed with China in 2025 following the armed conflict with India in May, as well as payments for earlier procurement contracts nearing completion," it said

Global Military Burden Metrics

The world's military burden--the share of global gross domestic product (GDP) devoted to military expenditure--went up from 2.4 per cent in 2024 to 2.5 per cent in 2025. The global average military expenditure as a share of government expenditure was 6.9 per cent in 2025, compared with 7.0 percent in 2024, and world spending per person stood at USD 352 in 2025.

Drivers of Global Spending Surge

West Asia, however, saw only marginal growth despite ongoing conflicts and regional rivalries. Military spending declined in the United States but rose by 14 per cent in Europe and by 8.1 per cent in Asia and Oceania, the report said. The Global military spending surged by almost 3 per cent in 2025, fueled largely by ballooning defence expenditures in Europe and Asia as per the SIPRI report. The increase in military spending brought the global military burden--military expenditure as a share of gross domestic product (GDP)--to 2.5 per cent, its highest level since 2009. "Global military spending rose again in 2025 as states responded to another year of wars, uncertainty and geopolitical upheaval with large-scale armament drives," the report said.

United States Spending Declines

At USD 954 billion, military spending by the United States was 7.5 per cent lower in 2025 than in 2024. The drop was primarily due to the fact that no new financial military assistance for Ukraine was approved during the year. This was in sharp contrast to the previous three years, when a total of USD 127 billion was approved.

European and Asian Expenditure Rises

The main contributor to the global increase in military spending in 2025 was a 14 per cent rise in Europe to USD 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. Military expenditure in Asia and Oceania totalled USD 681 billion in 2025, 8.1 per cent higher than in 2024--the largest annual rise since 2009m the SIPRI report said.

China Continues Modernization Drive

China, the world's second largest military spender, increased its military spending by 7.4 per cent to USD 336 billion. This was the 31st consecutive year-on-year increase as China continued its military modernization drive. "A renewed campaign against corruption in military procurement does not appear to have constrained spending," the SIPRI report stated. (ANI)

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