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India emerged as the fifth-largest military spender in 2025, according to the latest annual report from the Stockholm International Peace Research Institute (SIPRI). India’s expenditure rose to $92.1 billion, representing an 8.9% increase from 2024.
The spending spike was largely driven by a conflict with Pakistan in May 2025.
Intensive procurement of drones, counter-drone systems, and air defence platforms like the S-400 missile system.
Revised capital outlays for aircraft systems were 50% higher than originally budgeted to maintain combat preparedness.
Spending grew by 11% to $11.9 billion (ranked 31st globally), primarily for Chinese aircraft and missiles.
Witnessed the sharpest regional growth (14%) due to the ongoing Russia-Ukraine war and NATO rearmament.
Key Takeaway: India’s rising budget reflects a shift from a major arms importer to a strategic regional power, with defence exports also hitting a record ?38,424 crore in the same period.