SIPRI 2025: World Military Spending Hits $2.89 Trillion
Why in the news
The latest SIPRI report showed world defence spending at an all-time high, with India’s outlay jumping after the short conflict with Pakistan in May 2025.
Key facts
- Global total: $2.89 trillion in 2025; 11th consecutive year of growth; 2.5% of global GDP.
- India: $92.1 billion, +8.9%, 5th largest, 2.3% of GDP.
- Drivers: aircraft capital outlay 50% above budget; IAF personnel and operations costs 18% above estimates; drones, missile defence, combat aircraft.
- Big Five share: 58% of world spending.
- Asia and Oceania: +8.1% to $681 billion, fastest region.
| Country | Spending ($ bn) | Change | Note |
|---|---|---|---|
| USA | 954 | -7.5% | Leader; lower overseas allocation |
| China | 336 | +7.4% | About 12% global share |
| Russia | 190 | +5.9% | 7.5% of GDP on defence |
| Germany | 114 | +24.0% | Steepest rise among the five |
| India | 92.1 | +8.9% | Regional conflict of 2025 |
Key concepts
- SIPRI: Stockholm International Peace Research Institute, an independent body researching conflict, armaments, arms control and disarmament.
- Share of GDP: shows the burden on an economy. Pakistan spends about $12 billion, less than India, but a higher share of GDP at 2.9% versus India’s 2.3%.
- Capital outlay: money spent on assets such as fighter jets, submarines or tanks.
Exam angle
- Report publisher: SIPRI.
- India’s rank and spend: 5th, $92.1 billion.
- Russia’s burden: 7.5% of GDP.