Global military spending hits record $2.89 trillion: Europe re-arms, China expands, India spends $92.1 billion
SIPRI's latest figures, released on April 27, show that military expenditure as a share of global GDP reached 2.5% in 2025. Europe was the principal force behind the global increase. Military expenditure across the continent rose 14% to $864 billion as the war in Ukraine entered its fourth year.
- Aug 27, 2026,
- Updated Aug 27, 2026 6:07 PM IST
The world is spending more on its militaries than ever before. Global military expenditure reached $2.887 trillion in 2025, rising 2.9% in real terms from the previous year and marking the 11th consecutive year of growth, according to the Stockholm International Peace Research Institute (SIPRI).
But beneath the headline figure is a bigger strategic shift: the centre of gravity of military spending is increasingly moving towards Europe and Asia, as countries respond to wars, geopolitical uncertainty and concerns about the reliability of traditional security guarantees.
SIPRI's latest figures, released on April 27, show that military expenditure as a share of global GDP reached 2.5% in 2025, the highest level since 2009. While the global rate of increase slowed sharply from 9.7% in 2024, the headline figure masks a much stronger rise outside the United States. Military spending excluding the US increased by 9.2% in 2025.
The result is a world where governments are simultaneously investing in conventional forces, nuclear capabilities, military technology, ammunition, research and development and the industrial capacity needed to sustain prolonged conflicts.
Europe emerges as the biggest driver
Europe was the principal force behind the global increase. Military expenditure across the continent rose 14% to $864 billion in 2025, as the war in Ukraine entered its fourth year and European NATO members accelerated rearmament. SIPRI said the annual growth in Central and Western Europe was the sharpest since the end of the Cold War.
Russia spent an estimated $190 billion, a 5.9% increase, taking its military burden to 7.5% of GDP. Ukraine, meanwhile, raised military expenditure by 20% to $84.1 billion, equivalent to an extraordinary 40% of its GDP. Ukraine ranked seventh globally among military spenders.
European NATO members collectively spent $559 billion in 2025. Germany became the biggest spender among them, increasing its military expenditure by 24% to $114 billion. Its military burden reached 2.3% of GDP, crossing the 2% threshold for the first time since 1990. Spain recorded an even sharper increase, with spending jumping 50% to $40.2 billion.
The surge reflects more than the immediate demands of the Ukraine war. European governments are also reassessing how much military capability they need to maintain independently, amid pressure from Washington for greater burden-sharing within NATO.
SIPRI notes that European NATO military spending grew faster in 2025 than at any time since 1953. That points to a potentially lasting transformation of Europe's defence posture rather than a temporary wartime spike.
US's spending dip may be temporary
The United States remained by far the world's largest military spender, allocating $954 billion in 2025. Yet its expenditure fell 7.5% from 2024.
SIPRI attributes much of the decline to the absence of newly approved US financial military assistance for Ukraine in 2025. That was a major departure from the previous three years, when Washington approved a combined $127 billion in military assistance.
The decline, however, may prove short-lived.
SIPRI says US military spending approved by Congress for 2026 has risen above $1 trillion and could reach $1.5 trillion in 2027 if the latest budget proposal from President Donald Trump is accepted. The US is also continuing to invest in nuclear and conventional capabilities, particularly with an eye on maintaining its position in the Western Hemisphere and deterring China in the Indo-Pacific.
China drives Asia's military buildup
Asia and Oceania recorded their strongest military spending growth since 2009. Combined expenditure reached $681 billion, an 8.1% increase over 2024.
China remained the world's second-largest military spender, increasing its expenditure by 7.4% to an estimated $336 billion. It was China's 31st consecutive annual increase in military spending, reflecting the country's continuing military modernization programme.
The significance goes beyond China's own budget. Beijing's military expansion is encouraging neighbouring countries and US allies to reconsider their defence requirements.
Japan's military expenditure rose 9.7% to $62.2 billion, equivalent to 1.4% of GDP — the country's highest military burden since 1958. Taiwan increased spending by 14% to $18.2 billion, or 2.1% of GDP, amid intensifying Chinese military activity around the island.
Australia, Japan and the Philippines are also spending more, with SIPRI pointing to both longstanding regional tensions and growing uncertainty over the future level of US security support as factors behind the increase.
India raises military spending to $92.1 billion
For India, the SIPRI numbers underline the country's growing position in the global defence landscape.
India was the fifth-largest military spender in the world in 2025, increasing its expenditure by 8.9% to $92.1 billion. Pakistan, by comparison, increased military expenditure by 11% to $11.9 billion.
India's position is significant because its defence spending sits within a wider strategic shift. New Delhi is simultaneously dealing with a nuclear-armed China, a long-running security challenge along its northern borders and Pakistan, while seeking to expand domestic defence production and reduce dependence on foreign suppliers.
The spending figure also comes as India's defence-industrial ecosystem is undergoing a transformation, with greater emphasis on indigenous missiles, drones, fighter aircraft, naval platforms, electronic warfare and other advanced systems.
SIPRI's separate 2026 arms-transfer data shows that India remained the world's second-largest importer of major arms in 2021-25, although its imports fell marginally by 4% compared with 2016-20. More importantly, Russia's share of India's arms imports dropped from 51% to 40%, while India increasingly turned towards Western suppliers.
This combination — higher military expenditure alongside diversification of suppliers and greater domestic production — could become one of the defining features of India's defence strategy in the coming years.
West Asia spending remains surprisingly stable
The West Asia presents a contrasting picture. Despite multiple conflicts and continuing regional rivalries, military expenditure across the region was estimated at $218 billion in 2025, virtually unchanged from the previous year. Spending rose in several major countries, but Israel's lower expenditure offset much of the increase elsewhere.
Israel's military spending fell 4.9% to $48.3 billion, reflecting a reduction in the intensity of the Gaza war after the January 2025 ceasefire agreement. Yet its military expenditure remained 97% higher than in 2022, showing how dramatically the conflict had altered its defence spending trajectory.
Türkiye increased spending by 7.2% to $30 billion, while Iran's military expenditure declined 5.6% in real terms to $7.4 billion. SIPRI cautioned that Iran's official figures probably understate its actual military expenditure because off-budget oil revenues are also used to finance military activities, including missile and drone production.
Saudi Arabia, meanwhile, remained one of the world's biggest military spenders, increasing expenditure 1.4% to $83.2 billion and ranking eighth globally.
World's top three still account for half the total
The global military spending landscape remains highly concentrated. The United States, China and Russia together spent approximately $1.48 trillion in 2025, accounting for 51% of the world's total military expenditure.
The US alone accounted for $954 billion, while China spent an estimated $336 billion and Russia $190 billion. Their combined weight means that strategic decisions made in Washington, Beijing and Moscow have an outsized impact on the global defence economy.
Yet the faster growth elsewhere is equally important. Europe, Asia and several middle powers are increasing their military budgets at rates that could gradually alter the distribution of global defence spending.
The world is spending more on its militaries than ever before. Global military expenditure reached $2.887 trillion in 2025, rising 2.9% in real terms from the previous year and marking the 11th consecutive year of growth, according to the Stockholm International Peace Research Institute (SIPRI).
But beneath the headline figure is a bigger strategic shift: the centre of gravity of military spending is increasingly moving towards Europe and Asia, as countries respond to wars, geopolitical uncertainty and concerns about the reliability of traditional security guarantees.
SIPRI's latest figures, released on April 27, show that military expenditure as a share of global GDP reached 2.5% in 2025, the highest level since 2009. While the global rate of increase slowed sharply from 9.7% in 2024, the headline figure masks a much stronger rise outside the United States. Military spending excluding the US increased by 9.2% in 2025.
The result is a world where governments are simultaneously investing in conventional forces, nuclear capabilities, military technology, ammunition, research and development and the industrial capacity needed to sustain prolonged conflicts.
Europe emerges as the biggest driver
Europe was the principal force behind the global increase. Military expenditure across the continent rose 14% to $864 billion in 2025, as the war in Ukraine entered its fourth year and European NATO members accelerated rearmament. SIPRI said the annual growth in Central and Western Europe was the sharpest since the end of the Cold War.
Russia spent an estimated $190 billion, a 5.9% increase, taking its military burden to 7.5% of GDP. Ukraine, meanwhile, raised military expenditure by 20% to $84.1 billion, equivalent to an extraordinary 40% of its GDP. Ukraine ranked seventh globally among military spenders.
European NATO members collectively spent $559 billion in 2025. Germany became the biggest spender among them, increasing its military expenditure by 24% to $114 billion. Its military burden reached 2.3% of GDP, crossing the 2% threshold for the first time since 1990. Spain recorded an even sharper increase, with spending jumping 50% to $40.2 billion.
The surge reflects more than the immediate demands of the Ukraine war. European governments are also reassessing how much military capability they need to maintain independently, amid pressure from Washington for greater burden-sharing within NATO.
SIPRI notes that European NATO military spending grew faster in 2025 than at any time since 1953. That points to a potentially lasting transformation of Europe's defence posture rather than a temporary wartime spike.
US's spending dip may be temporary
The United States remained by far the world's largest military spender, allocating $954 billion in 2025. Yet its expenditure fell 7.5% from 2024.
SIPRI attributes much of the decline to the absence of newly approved US financial military assistance for Ukraine in 2025. That was a major departure from the previous three years, when Washington approved a combined $127 billion in military assistance.
The decline, however, may prove short-lived.
SIPRI says US military spending approved by Congress for 2026 has risen above $1 trillion and could reach $1.5 trillion in 2027 if the latest budget proposal from President Donald Trump is accepted. The US is also continuing to invest in nuclear and conventional capabilities, particularly with an eye on maintaining its position in the Western Hemisphere and deterring China in the Indo-Pacific.
China drives Asia's military buildup
Asia and Oceania recorded their strongest military spending growth since 2009. Combined expenditure reached $681 billion, an 8.1% increase over 2024.
China remained the world's second-largest military spender, increasing its expenditure by 7.4% to an estimated $336 billion. It was China's 31st consecutive annual increase in military spending, reflecting the country's continuing military modernization programme.
The significance goes beyond China's own budget. Beijing's military expansion is encouraging neighbouring countries and US allies to reconsider their defence requirements.
Japan's military expenditure rose 9.7% to $62.2 billion, equivalent to 1.4% of GDP — the country's highest military burden since 1958. Taiwan increased spending by 14% to $18.2 billion, or 2.1% of GDP, amid intensifying Chinese military activity around the island.
Australia, Japan and the Philippines are also spending more, with SIPRI pointing to both longstanding regional tensions and growing uncertainty over the future level of US security support as factors behind the increase.
India raises military spending to $92.1 billion
For India, the SIPRI numbers underline the country's growing position in the global defence landscape.
India was the fifth-largest military spender in the world in 2025, increasing its expenditure by 8.9% to $92.1 billion. Pakistan, by comparison, increased military expenditure by 11% to $11.9 billion.
India's position is significant because its defence spending sits within a wider strategic shift. New Delhi is simultaneously dealing with a nuclear-armed China, a long-running security challenge along its northern borders and Pakistan, while seeking to expand domestic defence production and reduce dependence on foreign suppliers.
The spending figure also comes as India's defence-industrial ecosystem is undergoing a transformation, with greater emphasis on indigenous missiles, drones, fighter aircraft, naval platforms, electronic warfare and other advanced systems.
SIPRI's separate 2026 arms-transfer data shows that India remained the world's second-largest importer of major arms in 2021-25, although its imports fell marginally by 4% compared with 2016-20. More importantly, Russia's share of India's arms imports dropped from 51% to 40%, while India increasingly turned towards Western suppliers.
This combination — higher military expenditure alongside diversification of suppliers and greater domestic production — could become one of the defining features of India's defence strategy in the coming years.
West Asia spending remains surprisingly stable
The West Asia presents a contrasting picture. Despite multiple conflicts and continuing regional rivalries, military expenditure across the region was estimated at $218 billion in 2025, virtually unchanged from the previous year. Spending rose in several major countries, but Israel's lower expenditure offset much of the increase elsewhere.
Israel's military spending fell 4.9% to $48.3 billion, reflecting a reduction in the intensity of the Gaza war after the January 2025 ceasefire agreement. Yet its military expenditure remained 97% higher than in 2022, showing how dramatically the conflict had altered its defence spending trajectory.
Türkiye increased spending by 7.2% to $30 billion, while Iran's military expenditure declined 5.6% in real terms to $7.4 billion. SIPRI cautioned that Iran's official figures probably understate its actual military expenditure because off-budget oil revenues are also used to finance military activities, including missile and drone production.
Saudi Arabia, meanwhile, remained one of the world's biggest military spenders, increasing expenditure 1.4% to $83.2 billion and ranking eighth globally.
World's top three still account for half the total
The global military spending landscape remains highly concentrated. The United States, China and Russia together spent approximately $1.48 trillion in 2025, accounting for 51% of the world's total military expenditure.
The US alone accounted for $954 billion, while China spent an estimated $336 billion and Russia $190 billion. Their combined weight means that strategic decisions made in Washington, Beijing and Moscow have an outsized impact on the global defence economy.
Yet the faster growth elsewhere is equally important. Europe, Asia and several middle powers are increasing their military budgets at rates that could gradually alter the distribution of global defence spending.