New Delhi: India has secured its position as the world’s fifth-largest military spender, with defence expenditure reaching 92.1 billion dollars in 2025, according to the latest global assessment. This marks an increase of 8.9 percent from the previous year and accounts for 3.2 percent of total global military spending.
Only United States, China, Russia and Germany rank ahead of India. The rise in expenditure comes during a period of heightened security focus, including India’s recent military preparedness measures such as Operation Sindoor and emergency procurements to strengthen defence readiness.
Neighbouring countries have also increased spending. China continues to hold the second position globally with an estimated 336 billion dollars, while Pakistan recorded an 11 percent rise in defence outlay to 11.9 billion dollars, ranking 31st overall. Analysts indicate that India’s defence priorities are significantly influenced by its strategic environment, particularly tensions with China and Pakistan.
Globally, military expenditure reached a record 2,887 billion dollars in 2025, reflecting a steady rise and accounting for 2.5 percent of global GDP, the highest level in over a decade. Europe emerged as the primary driver of this surge, with substantial increases across several nations, while the Asia-Oceania region also recorded notable growth.
Despite a slight decline in arms imports over recent years, India remains the world’s second-largest arms importer. However, its procurement strategy is evolving, with a gradual shift away from heavy reliance on Russia towards increased sourcing from countries like France, Israel and the United States.
The Union Budget for 2026-27 further underlines India’s defence focus, with a significant allocation aimed at modernisation. Investments are being directed towards advanced platforms such as fighter aircraft, naval systems, missiles, drones and surveillance technologies, signalling a clear emphasis on strengthening operational capability and long-term preparedness.
