India Ranks as World’s Fifth-Largest Military Spender in 2025 with $92.1 Billion, SIPRI

India has emerged as the fifth-largest military spender globally in 2025, with defence expenditure reaching $92.1 billion, marking an 8.9 per cent increase from the previous year, according to data from the Stockholm International Peace Research Institute (SIPRI).

The rise was partly attributed to a short but intense armed conflict with Pakistan in May 2025, which prompted accelerated spending on combat aircraft, drones, missiles, and related operational costs for the Indian Air Force.Global military expenditure hit a record $2.887 trillion in 2025, reflecting the 11th consecutive year of growth, though the annual increase slowed to 2.9 per cent in real terms. The top five spenders, the United States, China, Russia, Germany, and India, together accounted for 58 per cent of the worldwide total.

According to the SIPRI rankings for 2025:United States: Largest spender at approximately $954 billion
China: Second at an estimated $336 billion
Russia: Third at $190 billion
Germany: Fourth at $114 billion, following a sharp 24 per cent rise
India: Fifth at $92.1 billion

Germany’s spending, which exceeded 2 per cent of its GDP for the first time since reunification, has drawn attention given the country’s smaller population and economy relative to India’s. Some observers have expressed concern over Germany outspending India, even as India continues efforts to modernise its forces through indigenous platforms such as the Tejas fighter jet.

India’s defence budget represented roughly 2.3 per cent of its GDP, balancing security requirements with the need to sustain economic growth.