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GS-2: Important International institutions, agencies and fora - their structure, mandate.

Context: The Stockholm International Peace Research Institute (SIPRI) released its latest report on trends in global military expenditure in April 2026, highlighting the evolving nature of global security dynamics.

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• The report underscores the continued rise in military spending amid persistent geopolitical tensions such as the Russia–Ukraine conflict, intensifying Indo-Pacific competition, and renewed focus on NATO rearmament and European security concerns. 

• It reflects a broader global trend of increasing militarisation driven by uncertainty in the international order and rising strategic rivalries among major powers. 

Key Findings

(A) Global Trends

• The global military expenditure rose by 2.9% in real terms to reach $2887 billion in 2025, which was the 11th consecutive year of growth. 

• The global spending reflects a 41% increase over the decade (2016–25), marking the continuation of a sustained upward trajectory in global defence spending. 

• Military spending as a share of global GDP increased from 2.4% in 2024 to 2.5% in 2025, the highest level recorded since 2009, indicating rising prioritisation of defence in national economies.

• Defence expenditure constituted approximately 6.9% of total global government spending, while per capita military spending reached $352, highlighting the growing burden of militarisation on public finances. 

• The five biggest spenders in 2025 were the United States, China, Russia, Germany and India, which together accounted for 58% of world military spending. 

• The United States, China, and Russia alone accounted for about 51% of global military spending, with a combined expenditure of nearly $1.48 trillion. 

• The United States remained the largest military spender at $954 billion, accounting for a third of all military spending in 2025. 

• The US registered a decline of around 7.5% in 2025, while China ($336 billion, +7.4%) and Russia ($190 billion, +5.9%) continued to expand their defence budgets steadily. 

(B) Regional Trends

• Europe: Europe recorded the highest regional increase in military expenditure, with spending rising by 14% to $864 billion, driven primarily by the Russia–Ukraine conflict and enhanced NATO defence commitments. 

• Asia and Oceania: Military spending in Asia and Oceania grew by 8.1% to $681 billion, marking the fastest growth since 2009, largely due to China’s military modernisation and rising defence investments by countries such as India, Japan, and Taiwan. 

• Middle East: Military expenditure in the Middle East remained relatively stable at $218 billion, reflecting a phase of consolidation amid evolving regional security dynamics. 

• Africa: Africa witnessed an increase of 8.5% in military spending to $58.2 billion, driven by internal security challenges, counter-terrorism operations, and regional instability. 

India-Specific Findings

(A) Global Ranking and Expenditure Levels

• India ranked as the 5th largest military spender globally in 2025, with total expenditure estimated at around $92.1 billion. 

• The country recorded an increase of approximately 8.9% in military spending compared to the previous year. 

(B) Key Drivers of Defence Spending

• India’s military expenditure is primarily driven by border tensions with China along the Line of Actual Control and ongoing security concerns with Pakistan. 

• The need to maintain preparedness on both western and northern fronts has significantly influenced defence allocations. 

• The government’s push for ‘Atmanirbhar Bharat’ in defence has led to increased investments in domestic manufacturing and defence research. 

Implications of Rising Military Expenditure

• Global Security Paradox: The continuous rise in military expenditure reflects a paradox wherein increased spending does not necessarily ensure peace but instead often intensifies mistrust and strategic competition among nations. 

• Economic Trade-offs and Developmental Impact: Rising defence budgets divert resources away from critical sectors such as health, education, and infrastructure, potentially hindering progress toward Sustainable Development Goals. 

• Risk of Regional Arms Race: The growing trend of militarisation increases the likelihood of arms races, particularly in Europe and the Indo-Pacific, thereby escalating regional tensions and instability. 

• Emergence of a Competitive Multipolar Order: Increasing military expenditure signifies a shift toward a multipolar world order characterised by competitive power dynamics rather than cooperative global governance. 

About the Stockholm International Peace Research Institute (SIPRI)

• It is an independent international institute dedicated to research on issues related to conflict, armaments, arms control, and disarmament.

• SIPRI was established in 1966, and it provides data, analysis, and recommendations based on open sources. 

• It is widely regarded as a credible source of global security data and publishes authoritative resources such as the SIPRI Yearbook and Military Expenditure Database. 

• Headquarters: Stockholm, Sweden. 

SOURCES
SIPRI
SIPRI
Times Of India