India has emerged as the fifth-largest military spender globally in 2025, increasing its defence expenditure by 8.9 per cent to USD 92.1 billion, according to a report released by the Stockholm International Peace Research Institute (SIPRI) on Monday.
The global military expenditure also continued its upward trend, reaching USD 2,887 billion in 2025, marking the 11th consecutive year of growth. The United States, China, Russia, Germany and India remained the top five spenders, collectively accounting for 58 per cent of total global military spending.
India-Pakistan conflict pushes regional spending
The report noted that the India-Pakistan conflict in May 2025 played a role in driving India’s higher defence spending. The escalation, which involved the use of combat aircraft, drones and missiles, contributed to increased procurement and operational costs during the year.
“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 rise driven by Europe and Asia
The report highlighted that global military spending rose by nearly 3 per cent in 2025, largely driven by increased expenditure in Europe and Asia. The global military burden also rose to 2.5 per cent of GDP, the highest 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.
The United States remained the world’s largest spender at USD 954 billion, though its spending declined by 7.5 per cent due to reduced military aid approvals for Ukraine compared to previous years.
Europe recorded the sharpest rise, with spending increasing 14 per cent to USD 864 billion, driven by the ongoing war in Ukraine and NATO-led rearmament efforts. Meanwhile, Asia and Oceania saw spending rise 8.1 per cent to USD 681 billion, with China continuing its long-term military modernisation push.
China, the second-largest spender globally, increased its defence budget by 7.4 per cent to USD 336 billion, marking its 31st consecutive year of growth despite a renewed anti-corruption drive in military procurement.