In 2024, global military expenditures reached an all-time high of $2.72 trillion, representing the tenth consecutive year of growth and the most significant increase since 1988, as reported by the Stockholm International Peace Research Institute (SIPRI). India ranks as the fifth-largest military spender worldwide, dedicating $86.1 billion to its armed forces, according to SIPRI’s recent publication, Trends in World Military Expenditure, 2024, released on April 28. Although India’s military budget experienced a modest rise of 1.6% from 2023, it has surged by an impressive 42% since 2015, reflecting the nation’s commitment to modernizing its military in light of regional security threats, particularly from neighboring countries. Currently, India’s defense spending constitutes 2.3% of its GDP. In 2024, the United States, China, Russia, Germany, and India collectively accounted for 60% of global military spending, with the U.S. alone expending an astonishing $997 billion, nearly twelve times India’s budget. China’s military budget of $314 billion is approximately 3.6 times that of India and continues to expand rapidly.
Despite its fifth-place ranking in military expenditure, India remains significantly dependent on arms imports, particularly for advanced systems such as combat aircraft. To mitigate this reliance, the Indian government has implemented policies aimed at enhancing domestic arms production, allocating 75% of its capital expenditure to local military procurement, thereby advancing its defense industrial capabilities. This push for domestic defense production carries substantial implications for India’s economic framework. While the government has invested heavily in the defense sector, this emphasis on military spending may adversely affect the social sector. The reallocation of funds towards defense initiatives, including the production of advanced weaponry, raises concerns regarding potential reductions in essential social programs such as healthcare and education, which are crucial for the nation’s long-term development.As India continues to push for a stronger domestic defense manufacturing base, the report noted, its reliance on imports for some advanced systems persists.
