Global Military Spending Hits Record $2.9 Trillion; India Retains Fifth Spot After Conflict With Pakistan

World military expenditure reached a record $2,887 billion in 2025, rising 2.9 per cent in real terms and marking the 11th consecutive year of growth, with India emerging as the world’s fifth-largest defence spender, according to the Stockholm International Peace Research Institute’s Trends in World Military Expenditure, 2025 report.

The report stated that the total military expenditure accounted for 2.5 per cent of the global gross domestic product (GDP) in 2025.

India’s military budget jumped nearly 8.9 per cent to $92.1 billion in 2025, cementing its position as the world’s fifth-largest defence spender behind the United States, China, Russia, and Germany.

The jump, which brought India’s spending to 2.3 per cent of its GDP, was significantly shaped by its armed conflict with Pakistan in May 2025, which involved combat aircraft, drones, and missiles.

In its wake, revised capital outlays for Indian Air Force aircraft systems came in 50 per cent higher than originally budgeted. In comparison, operations and personnel costs for the service were revised upward by 18 per cent.

Over the decade from 2016 to 2025, India’s military expenditure has risen by 39 per cent, according to SIPRI.

In 2024, India was the world’s fifth-largest military spender at $86.1 billion, up 1.6 per cent from 2023 and 42 per cent from 2015, according to SIPRI’s Trends in World Military Expenditure, 2024 report.

While New Delhi has made significant strides in domestic defence production, covering armoured vehicles, helicopters, and submarines, it remains dependent on imports for advanced systems such as combat aircraft.

The milestone comes as conflicts and geopolitical tensions continued to rage, forcing governments globally to invest heavily in defence. Globally, the five largest spenders—the US, China, Russia, Germany, and India—together accounted for $1,686 billion, or 58 per cent of total world military expenditure.

China

China’s military spending rose 7.4 per cent to an estimated $336 billion in 2025. This was the largest year-on-year increase in a decade and the 31st consecutive annual rise, the longest such streak of any country in the SIPRI database.

Spending, which stood at $314 billion in 2024, now equals 1.7 per cent of GDP, consistent with its average over the past decade.

The growth comes despite a renewed anti-corruption campaign within the People’s Liberation Army that led to the dismissal of several senior military and arms industry officials, though this did not appear to constrain spending. The outlay continues to fund the PLA’s sweeping modernisation drive, with 2025 marking notable milestones, the testing of prototype sixth-generation combat aircraft, and a strategic bomber achieving initial operational capability.

Pakistan

Pakistan’s military spending rose 11 per cent to $11.9 billion in 2025, though the country slipped two places to rank 31st among the world’s biggest defence spenders, down from 29th in 2024 when it spent $10.2 billion.

SIPRI attributed the increase primarily to new orders for aircraft and missiles placed with China in the aftermath of its armed conflict with India in May, as well as payments on earlier procurement contracts nearing completion.

Overall spending

While the United States cut its military budget by 7.5 per cent to $954 billion, Russia raised spending by 5.9 per cent to an estimated $190 billion, amounting to 7.5 per cent of its GDP.

In addition, Ukraine by 20 per cent to $84.1 billion, a punishing 40 per cent of its GDP.

Military expenditure grew in all regions except the Americas, with Europe surging 14 per cent to $864 billion and Asia and Oceania rising 8.1 per cent to $681 billion.

NATO’s 32 members collectively spent $1,581 billion—55 per cent of the global total—with 23 members meeting the alliance’s 2 per cent of GDP threshold, the report stated.