India has emerged as the world's fifth-largest military spender, with its defence budget rising by 8.9 percent to $92.1 billion in 2025. This increase is part of a broader global trend in rising military expenditure, according to a report by the Stockholm International Peace Research Institute (SIPRI).
Global Military Spending Hits Record
The SIPRI report, released on Monday, reveals that global military expenditure reached a record $2.89 trillion in 2025, marking the 11th consecutive year of growth. The five largest spenders—the United States, China, Russia, Germany, and India—accounted for 58 percent of the total, or $1,686 billion.
India-Pakistan Conflict Drives Regional Spending
The report identifies a brief but intense conflict between India and Pakistan in May 2025 as a key driver for increased defence spending in the region. The skirmish involved combat aircraft, drones, and missiles, prompting India to bolster its outlays. Pakistan's military spending rose by 11 percent to $11.9 billion, largely due to new orders for aircraft and missiles from China following the conflict.
"Pakistan's military spending grew by 11 percent to $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," the report noted.
Global Trends and the Big Five
The global military burden—the percentage of global GDP devoted to defence—reached 2.5 percent, its highest level since 2009. On average, governments allocated 6.9 percent of their total budgets to the military, amounting to $352 per person worldwide.
"Global military spending rose again in 2025 as states responded to another year of wars, uncertainty and geopolitical upheaval with large-scale armament drives," SIPRI stated.
US Spending Declines, European Surge
US military spending fell by 7.5 percent to $954 billion, attributed to the absence of new financial military aid for Ukraine, which had received $127 billion in the preceding three years. However, SIPRI researchers suggest this dip may be temporary, as approved funding for 2026 already exceeds $1 trillion.
In contrast, European spending surged by 14 percent to $864 billion, fueled by the ongoing war in Ukraine and rapid rearmament among NATO members. This marked the sharpest growth in Central and Western Europe since the Cold War.
Asian Modernisation
In Asia and Oceania, total expenditure rose by 8.1 percent to $681 billion. China, the world's second-largest spender, increased its budget by 7.4 percent to $336 billion, marking its 31st consecutive year of growth. The report observed that "a renewed campaign against corruption in military procurement does not appear to have constrained spending."
Middle East and Conflict Zones
West Asia saw only marginal growth, with some nations reporting declines as active conflicts shifted. Israeli spending fell by 4.9 percent to $48.3 billion as the war in Gaza wound down, while Iran's expenditure dropped for a second year to $7.4 billion.
Outlook for 2026
Looking ahead, SIPRI concludes that the upward trend in military spending will likely continue through 2026 and beyond, given the range of current crises and many states' long-term spending targets.
