Global military expenditure increased to $2887 billion in 2025, according to new data published on 27 April 2026 by the Stockholm International Peace Research Institute (SIPRI). Among the top five military spenders in the world in 2025 were the United States, China, Russia, Germany, and India. These five countries accounted for nearly 58 per cent of the global military spending, which totalled around $1,686 billion.
At $954 billion, the United States remained the world's largest military spender in 2025. Despite a slight decrease in its defence expenditure, the US accounted for approximately one-third, approximately 33 per cent, of all global military spending.
Meanwhile, China ranked second in military spending at $336 billion. The world's third-largest military spender, Russia, was estimated at $190 billion, driven by its military operations in the Russia-Ukraine war. And then, the military spending of one of NATO's member countries, Germany, stood at $114 billion.
What is the rank of India in defence spending?
India ranks fifth in defence spending globally in 2025. India's defence spending stood at $92.1 billion. India's military spending grew by 8.9 per cent, according to the 2025 SIPRI data.
India now trails behind the US, Russia, China, and Germany. India's defence spending accounts for about 3.2 per cent of total global military spending.
India's military spending is primarily driven by heightened border tensions with China and Pakistan, the need for operational modernisation, and a strategic push for domestic manufacturing.
One of the major driver in India's military spending increase is the Operation Sindoor in response to a major terror attack in Pahalgam in May 2025 which necessitated the urgent deployment and procurement of combat aircrafts, missiles, and drones.
India is gradually shifting away from Russia and buying more from France, Israel and the United States. The focus is on giving a strong thrust to Aatmanirbhar Bharat (self-reliant India) by reducing import dependence.
India's Defence Budget
In the Union Budget for 2026-27, India set aside Rs 7.85 lakh crore for the Ministry of Defence, a 15.19 per cent hike from the previous year.
India’s defence budget rose from ₹2.53 lakh crore in 2013–14 to ₹7.85 lakh crore in 2026-27.
Of this, Rs 2.19 lakh crore have been set aside as capital outlay for procurement of next-generation fighter jets, advanced weapons, drones, surveillance systems, etc.
Of the total defence budget allocation, Rs 7,394 were allocated to the Border Roads Organisation (BRO) for modernising strategic projects like bridges, tunnels, etc.
Also read: Where does India get Fighter Jets from?
