Global Military Expenditure reached $2,887 billion in 2025, marking the 11th consecutive year of increase, according to the Stockholm International Peace Research Institute (SIPRI).
This represented 2.5% of global GDP. The United States remained the top spender at $954 billion, despite a 7.5% decline. China followed with $336 billion, while Russia spent about $190 billion.
India ranked fifth globally, with defence expenditure estimated at $92.1 billion in 2025. This was indicative of an 8.9% rise compared with 2024.
India remained among the 5 countries that together accounted for 58% of global military spending during the year.
The increase in India’s spending coincided with tensions with Pakistan in May 2025, when both sides deployed aircraft, drones and missile systems. Expenditure adjustments were linked to operational requirements during this period and subsequent procurement.
Revised capital allocations for military aircraft systems were reported to be 50% higher than initial budget estimates. Operational and personnel costs for the Indian Air Force were also revised upwards by 18%.
Pakistan’s military spending rose to $11.9 billion in 2025, an increase of 11%, placing it 31st globally. The rise was associated with procurement of aircraft and missile systems from China following the conflict period.
Defence spending accounted for 2.9% of Pakistan’s GDP, compared with India’s 2.3%.
Military expenditure in Asia and Oceania stood at $681 billion in 2025, up 8.1% from the previous year.
The increase shows continued regional tensions and security concerns, including developments involving India and Pakistan and wider Indo-Pacific dynamics.
Read More: TRAI Extends Comment Deadline to May 5 on Proposal for Lower-Priced Voice-Only Plans!
The data indicates that India’s defence spending increased in 2025 alongside operational requirements and ongoing procurement activity.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 29, 2026, 3:23 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
EN