Top 10 Countries with the Highest Defence Budgets in 2025: India’s Global Standing Revealed

The global defence expenditure has witnessed a significant surge in 2024, reaching $2.46 trillion, as per a recent report by the International Institute of Strategic Studies (IISS). This marks an increase from $2.24 trillion in 2023, with the average defence spending rising to 1.9% of the global GDP. This growth is primarily driven by increasing security threats, geopolitical tensions, and conflicts in regions such as Europe, the Middle East, North Africa (MENA), and Asia.

As nations continue to bolster their military capabilities, several countries have emerged as the top spenders in defence. In 2025, the United States, China, and Russia remain at the forefront, with India securing a strong position in the top five.

Global Military Spending Trends in 2025

The defence budgets of countries worldwide have seen a steady increase due to rising geopolitical tensions and the necessity for advanced military infrastructure. Governments are allocating record-high budgets to modernize their forces, enhance military technology, and strengthen national security.

According to the Global Firepower Ranking 2025, the world’s top ten countries with the highest military spending are:

Key Observations:

• The United States continues to dominate with an $895 billion defence budget.
• China, the second-largest spender, has allocated $266.85 billion to strengthen its military.
• Russia, engaged in ongoing conflicts, has increased its budget to $126 billion.
• India, with $75 billion, ranks fourth globally, maintaining a strong military presence.
• Ukraine has entered the top ten due to its ongoing conflict with Russia.

India’s Defence Spending in 2025: A Detailed Analysis

India’s Global Military Ranking

India is recognized as one of the world’s leading military powers, ranking fourth on the Global Firepower Index 2025 with a power score of 0.1184. The country has consistently increased its defence budget to modernize its forces and enhance military capabilities in response to evolving security threats.

Union Budget 2025: Defence Allocation

In the Union Budget for FY 2025, the Indian government has allocated ₹6.81 lakh crore to the Defence Ministry, accounting for 13.45% of the total budget. This is the highest allocation among all government ministries, reinforcing India’s commitment to national security.

Key Areas of Defence Spending

India’s defence budget focuses on modernization efforts, procurement of advanced weaponry, and strengthening border security. The key areas of investment include:

• Acquisition of fighter jets, warships, and submarines.
• Development of indigenous defence technology under the ‘Make in India’ initiative.
• Enhancing cybersecurity and space defence capabilities.
• Upgrading military infrastructure along the borders with China and Pakistan.

Why Are Countries Increasing Their Defence Budgets?

Several factors are driving the increase in military spending globally:

1. Rising Geopolitical Tensions

• The Russia-Ukraine war continues to escalate, pushing European countries to invest heavily in defence.
• The China-Taiwan conflict and territorial disputes in the South China Sea have heightened security concerns in Asia.
• NATO’s expansion and increased military drills have led to counter-measures by Russia and China.

2. Technological Advancements in Warfare

• Nations are investing in AI-driven military technology, cyber warfare, and hypersonic missiles.
• The race for nuclear deterrence and space warfare capabilities has further increased spending.

3. Strengthening Strategic Alliances

• Countries are forming alliances to counter mutual threats, leading to increased joint military budgets.
• India’s Quad alliance with the US, Japan, and Australia has contributed to higher defence expenditures.

The Future of Global Defence Spending

With growing security challenges, military spending is expected to rise further in the coming years. The development of new-generation weapons, the expansion of military alliances, and the rising threat of cyberwarfare will play a crucial role in shaping future defence budgets.

India, in particular, is focusing on self-reliance in defence production, aiming to reduce import dependency and strengthen its position as a global military power.