India's defence expenditure soared to an impressive $92.1 billion in 2025, securing its position as the world's fifth-largest military spender, a significant increase driven by operational and procurement demands following regional tensions with Pakistan.
India became the world's fifth-largest military spender in 2025, with defence expenditure rising to $92.1 billion amid escalating regional tensions.
India's defence spending rose 8.9% year-on-year, driven by conflict-linked operational and procurement needs.
Pakistan raised military spending by 11% to $11.9 billion, supported by Chinese arms procurement.
Global military expenditure reached a record $2.89 trillion in 2025, the 11th consecutive year of growth.
Key Points
- India's defence expenditure reached $92.1 billion in 2025, an 8.9 per cent increase year-on-year, positioning it as the world's fifth-largest military spender.
- The surge in India's spending was largely due to operational and procurement demands following heightened regional tensions and a conflict with Pakistan in May 2025.
- Pakistan also increased its defence budget by 11 per cent to $11.9 billion in 2025, driven by new aircraft and missile system procurements from China post-conflict.
- Global military expenditure hit a record $2,887 billion in 2025, marking the 11th consecutive year of growth, with the US, China, and Russia remaining top spenders.
- The increase in military spending across Asia and Oceania, including India, reflects rising geopolitical competition and regional flashpoints.
India emerged as the world’s fifth-largest military spender in 2025, with defence expenditure rising to $92.1 billion, according to the latest data released by the Stockholm International Peace Research Institute (SIPRI).
An 8.9 per cent year-on-year (Y-o-Y) rise comes amid heightened regional tensions between India and Pakistan in May 2025, which saw the use of combat aircraft, drones, and missile systems.
The spike in spending was driven by operational and procurement needs during and after the conflict.
“Revised capital outlays for military aircraft systems were 50 per cent higher than originally budgeted,” the report highlighted.
“While operations and personnel costs for the Indian Air Force were revised upwards by 18 per cent from the original budget.”
Pakistan's Rising Military Budget
Pakistan, which ranked 31st in the report, also increased its defence expenditure to $11.9 billion in 2025 -- up by 11 per cent – driven by fresh procurement orders for aircraft and missile systems from China following the conflict.
Its military spending stood at 2.9 per cent of its gross domestic product (GDP), reflecting both immediate post-conflict needs and long-term efforts to sustain its military capabilities.
Whereas, as a share of GDP, India’s military spending stood slightly below than Pakistan at 2.3 per cent.
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Global Trends in Defence Spending
World military expenditure stood at a record $2,887 billion in 2025, marking the 11th consecutive year of growth and accounting for 2.5 per cent of global GDP.
The United States remained the largest military spender at $954 billion, accounting for 33 per cent of global spending despite a 7.5 per cent decline, largely due to reduced overseas allocations.
China, the second-largest spender, increased its military budget by 7.4 per cent to an estimated $336 billion, continuing an upward trajectory linked to rapid modernisation with about 12 per cent of world spending.
Russia, engaged in a prolonged war with Ukraine since 2022, increased its expenditure by 5.9 per cent to about $190 billion, with defence spending reaching 7.5 per cent of its GDP.
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Together with Germany and India, these countries -- the world’s five biggest military spenders -- accounted for 58 per cent of total global defence spending in 2025.
The data also highlights a broader trend in militarisation, particularly in Asia and Oceania, where spending stood at $681 billion, an increase of 8.1 per cent from 2024, driven by rising geopolitical competition and flashpoints such as the India-Pakistan conflict and tensions in the Indo-Pacific region.
For India, the increase reflects a dual imperative: addressing immediate operational lessons from the 2025 clashes while continuing a long-term modernisation plan for armed forces.
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Feature Presentation: Rajesh Alva/Rediff
