India has emerged as the fifth-largest defence spender globally in 2025, reflecting rising strategic investments in military modernisation, border security, and advanced defence capabilities amid regional tensions.

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• Stockholm International Peace Research Institute reported that India ranked fifth globally in defence spending in 2025, with total military expenditure reaching $92.1 billion, accounting for 3.2% of global spending.
• India’s defence spending increased by 8.9% compared to 2024, driven by enhanced operational readiness, emergency procurements, and modernisation efforts amid ongoing regional security challenges.
• The United States, China, Russia, and Germany ranked above India, collectively dominating global defence expenditure, with the top three accounting for a significant share of total military spending worldwide.
• Pakistan’s defence spending rose by 11% to $11.9 billion, ranking 31st globally, but remained significantly lower than India’s expenditure, highlighting a major defence capability gap between the two nations.
• India’s increased spending includes investments in advanced military aircraft, missile systems, drones, and naval capabilities to strengthen its overall combat readiness and deterrence capacity.
• Global military expenditure reached a record $2.887 trillion in 2025, with Europe witnessing the highest growth due to the Russia-Ukraine conflict and increased NATO defence investments.
• India remains the world’s second-largest arms importer, though its imports declined slightly, with a shift away from Russia toward countries like France, Israel, and the United States.
• The Union Budget 2026–27 allocated ₹7.85 lakh crore for defence, supporting indigenous production, modern weapons systems, and long-term strategic military development goals.