Operation Sindoor boost: India is now fifth-largest military spender at USD 92.1 billion in 2025, Pakistan's spending is also up

India’s defence expenditure stood at $92.1 billion in 2025, marking an 8.9 per cent increase from the previous year, SIPRI said.

Pakistan’s military spending also rose, increasing by 11 per cent to $11.9 billion during the same period.

Only four countries — the United States, China, Germany and Russia — ranked above India in global military expenditure.

According to SIPRI, total world military spending reached $2,887 billion in 2025, reflecting a 2.9 per cent increase in real terms over 2024.

Military expenditure declined in the United States but rose sharply by 14 per cent in Europe and by 8.1 per cent in Asia and Oceania.

The top three military spenders — the US, China and Russia — together accounted for $1,480 billion, or 51 per cent of the global total.

“Global military spending rose again in 2025 as states responded to another year of wars, uncertainty and geopolitical upheaval with large-scale armament drives,” said Xiao Liang, researcher with SIPRI’s Military Expenditure and Arms Production Programme.

“Given the range of current crises, as well as many states’ long-term military spending targets, this growth will probably continue through 2026 and beyond,” Liang added.

US spending declines, but rebound expected

At $954 billion, US military spending was 7.5 per cent lower in 2025 than in 2024, mainly because no new financial military assistance for Ukraine was approved during the year. This marked a sharp contrast to the previous three years, when Washington approved a total of $127 billion in military aid.

However, the US increased investments in both nuclear and conventional military capabilities to maintain dominance in the Western Hemisphere and deter China in the Indo-Pacific, key priorities under its new National Security Strategy.

“The decline in US military expenditure in 2025 is likely to be short-lived,” said Nan Tian, Programme Director of SIPRI’s Military Expenditure and Arms Production Programme.

“Spending approved by the US Congress for 2026 has risen to over $1 trillion, a substantial increase from 2025, and could rise further to $1.5 trillion in 2027 if President Trump’s latest budget proposal is accepted,” Tian said.

Europe sees sharp rise amid Ukraine war and NATO push

Europe was the main contributor to the global increase in military spending, with expenditure rising 14 per cent to $864 billion in 2025.

Russia’s military spending grew by 5.9 per cent to $190 billion, amounting to 7.5 per cent of its GDP. Ukraine, the world’s seventh-largest military spender, raised defence expenditure by 20 per cent to $84.1 billion, equivalent to 40 per cent of GDP.

“In 2025, military expenditure as a share of government spending reached the highest level ever recorded in both Russia and Ukraine,” said Lorenzo Scarazzato, researcher with SIPRI.

“Their spending is likely to keep growing in 2026 if the war continues, with revenues from Russia’s oil sales increasing and a major European Union loan expected by Ukraine,” he added.

The 29 European NATO members spent a combined $559 billion in 2025, with 22 countries meeting or exceeding the 2 per cent of GDP defence spending benchmark.

Germany became the largest military spender among European NATO members, with spending rising 24 per cent to $114 billion. Its military burden crossed the 2 per cent threshold for the first time since 1990, reaching 2.3 per cent of GDP.

Spain’s military spending surged 50 per cent to $40.2 billion, also pushing its defence burden above 2 per cent of GDP for the first time since 1994.

Asia and Oceania record fastest rise since 2009

Military expenditure across Asia and Oceania reached $681 billion in 2025, up 8.1 per cent from 2024 — the region’s fastest annual increase since 2009.

China, the world’s second-largest military spender, increased defence spending by 7.4 per cent to $336 billion, marking its 31st consecutive annual rise as it continued military modernisation.

Japan’s military spending rose 9.7 per cent to $62.2 billion, equivalent to 1.4 per cent of GDP — the highest share since 1958.

Taiwan’s defence expenditure increased 14 per cent to $18.2 billion, or 2.1 per cent of GDP, marking its largest annual rise since at least 1988 amid intensifying Chinese military exercises around the island.

“US allies in Asia and Oceania such as Australia, Japan and the Philippines are spending more on their militaries, not only due to long-standing regional tensions but also because of growing uncertainty over US support,” said Diego Lopes da Silva, Senior Researcher at SIPRI.

Middle East spending remains largely stable

Military expenditure in the Middle East stood at an estimated $218 billion in 2025, only 0.1 per cent higher than the previous year.

Israel’s defence spending declined 4.9 per cent to $48.3 billion, reflecting reduced intensity in the Gaza war following the January 2025 ceasefire agreement with Hamas. However, Israel’s military spending remained 97 per cent higher than in 2022.

Türkiye increased defence spending by 7.2 per cent to $30 billion, partly driven by military operations in Iraq, Somalia and Syria.

Iran’s military expenditure fell for the second consecutive year, declining 5.6 per cent to $7.4 billion.

“Despite recent conflicts, Iran’s military spending decreased in real terms due to economic difficulties,” said Zubaida Karim, researcher with SIPRI.

“However, official figures almost certainly understate the true level of Iran’s spending — Iran also uses off-budget oil revenues to finance its military, including missile and drone production,” Karim added.