NEW DELHI: India has emerged as the world’s fifth-largest military spender, with its defence expenditure nearly nine times higher than Pakistan’s, according to the latest report by the Stockholm International Peace Research Institute (SIPRI). However, India must also contend with a much larger challenge: China, its other nuclear-armed neighbour, which spends almost four times more on defence.
Amid escalating global conflicts and geopolitical instability, worldwide military expenditure surged by 9.4% in real terms in 2024—the steepest year-on-year rise since the Cold War—reaching a record $2,718 billion. The top five military spenders—the United States, China, Russia, Germany, and India—accounted for 60% of this total, with combined spending of $1,635 billion.
The report is particularly timely, coming as tensions along the Line of Control with Pakistan have escalated following the Pahalgam terror attack, and China continues to maintain over 100,000 troops in forward positions along the Line of Actual Control despite partial disengagement in eastern Ladakh.
“India is probably the only country with two active and unresolved borders with nuclear-armed neighbours. We must be prepared for both fronts,” a senior Indian military officer told TOI.
According to SIPRI’s data, the top ten global military spenders in 2024 were:
- United States: $997 billion
- China: $314 billion
- Russia: $149 billion
- Germany: $88 billion
- India: $86 billion
- United Kingdom: $82 billion
- Saudi Arabia: $80 billion
- Ukraine: $65 billion
- France: $65 billion
- Japan: $55 billion
Pakistan ranked 29th with an expenditure of $10 billion.
Despite its significant spending, India faces challenges in maximizing the effectiveness of its defence budget, particularly given its two-front threat scenario. Only about 22% of India’s ₹6.8 lakh crore ($80 billion) defence budget for 2025-26 is allocated for capital acquisitions like new weapon systems and platforms; the remainder largely covers salaries, operational costs for the 1.4-million-strong armed forces, and pensions for over 3.4 million veterans and defence civilians.
India currently spends around 1.9% of its GDP on defence, well short of the 2.5% widely considered necessary to effectively counter the combined threat from China and Pakistan. A relatively underdeveloped defence-industrial base—making India the world’s second-largest arms importer—and the absence of a comprehensive long-term military modernization plan further exacerbate vulnerabilities.
As a result, India’s armed forces continue to face critical shortages across various sectors, including fighter jets, submarines, helicopters, air defence systems, anti-tank missiles, and night-fighting equipment.
Meanwhile, China is rapidly modernizing its two-million-strong military, expanding its capabilities across traditional domains—land, air, and sea—as well as nuclear, space, and cyber warfare. Notably, 2024 marked China’s 30th consecutive year of increasing its official military budget, which rose by 7% to an estimated $314 billion—its highest year-on-year percentage increase since 2015. Analysts believe China’s actual defence spending could be significantly higher.
SIPRI noted that China unveiled a range of advanced military capabilities in 2024, including new stealth combat aircraft, unmanned aerial vehicles (UAVs), and uncrewed underwater vehicles. The country also accelerated the expansion of its nuclear arsenal and bolstered its counter-space and cyberwarfare capabilities, establishing dedicated aerospace and cyberspace forces during the year.
While Pakistan’s military spending remains far lower, it is also modernizing its forces and remains a strategic concern.
