India ranked fifth among countries with the highest military expenditure in 2025, allocating Rs 8.71 lakh crore for defence, according to the Stockholm International Peace Research Institute (SIPRI).
The annual report said the United States led global military spending with more than Rs 88 lakh crore, followed by China (Rs 31 lakh crore), Russia (Rs 17 lakh crore) and Germany (Rs 10 lakh crore). India retained the same fifth position as the previous year.
The report attributed India’s higher outlay to heightened tensions with Pakistan and China, including the military action referred to as “Operation Sindoor” against Pakistan, and emergency procurement measures aimed at maintaining war readiness.
During the same period, Pakistan increased its military spending by 11% to Rs 1.10 lakh crore. Globally, military expenditure reached Rs 268 lakh crore—about 2.5% of world GDP—while European spending rose 14% amid the Russia–Ukraine war.
SIPRI also noted that India accounted for 8.2% of global arms imports, making it the second-largest importer, though its imports fell by 4% during 2021–2025. India has been gradually reducing purchases from Russia and increasing procurement from France, Israel and the United States.
