Top 10 Countries with the Highest Defence Budgets in 2025: Where Does India Stand?

Global military spending reached a record $2.46 trillion in 2025, rising from $2.24 trillion in 2023, according to the International Institute of Strategic Studies (IISS). This sharp increase is due to growing security threats, rising global tensions, and ongoing conflicts in Europe, the Middle East, North Africa (MENA), and Asia.

Countries are strengthening their military forces by investing in new technology, expanding naval fleets, and securing key locations. The United States, China, and Russia remain the top spenders, while India ranks fourth, showing its focus on national defence. As alliances shift and new threats emerge, military budgets reflect each nation's priorities in an increasingly uncertain world.

Source: globalfirepower

Global Military Spending Trends in 2025

Governments worldwide are allocating record-high defence budgets to modernize military infrastructure, develop advanced weaponry, and strengthen border security.

Top 10 Countries by Defence Budget (2025)

Key Observations:

• The United States maintains its dominance with an $895 billion defence budget.
• China, the second-largest spender, has allocated $266.85 billion to military enhancement.
• Russia, amid ongoing conflicts, has raised its budget to $126 billion.
• India, ranking fourth, has increased its defence allocation to $75 billion.
• Ukraine enters the top 10 due to its conflict with Russia.

A Detailed Analysis of India's 2025 Defence Spending

India’s Global Military Ranking

India is ranked fourth in the Global Firepower Index 2025, with a power score of 0.1184. The country has continuously increased its defence budget to modernize its forces and address evolving security threats.

Union Budget 2025: Defence Allocation

• The Indian government has allocated ₹6.81 lakh crore to the Defence Ministry.
• This represents 13.45% of the total national budget, making it the highest allocation among all ministries.

Key Areas of Defence Investment

India’s defence spending is strategically directed towards:

• Acquisition of advanced fighter jets, warships, and submarines.
• Boosting indigenous defence production under the ‘Make in India’ initiative.
• Enhancing cybersecurity and space defence capabilities.
• Strengthening border security along China and Pakistan.

Why Are Countries Increasing Their Defence Budgets?

Several geopolitical and technological factors are driving the surge in military spending:

1. Rising Geopolitical Tensions

• The Russia-Ukraine war continues to escalate, prompting increased defence investments across Europe.
• China-Taiwan tensions and territorial disputes in the South China Sea are intensifying security concerns.
• NATO expansion and frequent military exercises have resulted in countermeasures by Russia and China.

2. Technological Advancements in Warfare

• Countries are developing hypersonic missiles and investing in AI-powered military technologies and cyberwarfare.
• A growing focus on nuclear deterrence and space warfare is contributing to higher military budgets.

3. Strengthening Strategic Alliances

• Military alliances, such as India’s Quad partnership with the US, Japan, and Australia, have led to increased joint defence expenditures.
• Countries are forming strategic coalitions to counter common threats, further amplifying defence spending.

The Future of Global Defence Spending

With evolving security challenges, military spending is expected to rise further in the coming years. The development of next-generation weapons, expansion of strategic alliances, and advancements in cyberwarfare will shape future defence budgets.

India’s Defence Roadmap

• Aiming for self-reliance in military production to reduce import dependency.
• Expanding defence exports as part of its long-term economic and security strategy.
• Strengthening border security infrastructure to counter regional threats.

As nations navigate a rapidly shifting geopolitical landscape, defence spending will remain a critical aspect of national security planning worldwide.

Conclusion

Global military spending in 2025 has surged to $2.46 trillion, reflecting the rising geopolitical tensions and evolving security threats. The United States, China, and Russia remain the top spenders, while India ranks fourth with a $75 billion budget, emphasizing its commitment to modernization, self-reliance, and strategic defence enhancements.

The increasing investments in AI-driven warfare, cyber defence, and space security indicate a shift towards technologically advanced military capabilities. As alliances strengthen and regional conflicts intensify, global defence expenditures will continue to rise, shaping the future of warfare and national security policies worldwide.