India’s defence expenditure has risen by 8.9 per cent, reaching $92.1 billion in 2025. This increase positions India as the fifth largest military spender in the world, according to data released by the Stockholm International Peace Research Institute (SIPRI) on April 27, 2026. The upsurge in military expenses is notable in a year marked by heightened tensions with Pakistan, specifically following the Pahalgam attack in May 2025.

The SIPRI report indicates that this expenditure contributes to a broader global trend, with total military spending worldwide reaching $2,887 billion in 2025. This figure reflects a 2.9 per cent increase from 2024, marking the 11th consecutive year of rising military investments globally.

Global Military Expenditure Trends

The data reveals significant trends in military spending among the top three global powers. The United States, China, and Russia collectively accounted for $1,480 billion, which represents 51 per cent of global military expenditure. In 2025, the United States reported a military budget of $954 billion, reflecting a decline of 7.5 per cent compared to 2024, attributed to a lack of new military assistance for Ukraine.

Despite the reduction in American spending, investment in nuclear and conventional military capabilities has been prioritised to maintain a strategic advantage in the Western Hemisphere and to deter potential threats from China in the Indo-Pacific. Experts expect that upcoming data for 2026 will show an increase in US military expenditure due to ongoing conflicts, including the US-Iran situation.

European military spending has significantly surged, with an increase of 14 per cent, amounting to $864 billion in 2025. The situation in Ukraine, now in its fourth year, has propelled military growth in both Russia and Ukraine, while NATO members in Europe have ramped up their defence budgets, marking the steepest annual growth in the region since the Cold War.

Regional Insights on Military Spending

The report highlights an increase in military spending across varied regions, including the Middle East, which was estimated at $218 billion in 2025. Israel’s expenditure decreased by 4.9 per cent to $48.3 billion, largely due to decreased military activity following a ceasefire agreement earlier that year. Conversely, Turkey’s military budget rose by 7.2 per cent to $30 billion, influenced by ongoing military operations abroad.

In Asia and Oceania, military expenditures reached $681 billion, up 8.1 per cent compared to 2024. Notably, China—retaining its status as the second largest military spender—saw its military spending grow by 7.4 per cent to $336 billion, reflecting a continuous drive towards military modernisation. Meanwhile, Japan’s military spending increased by 9.7 per cent, the highest proportion of GDP since 1958, driven by regional security concerns.

SIPRI’s analysis underscores that while India’s military outlay has expanded amid regional tensions and a global rise in defence spending, the overall landscape indicates a broader pattern of increased military investments across the globe, with various nations prioritising defence in response to changing geopolitical dynamics.

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