What happened?
India’s military expenditure rose by 1.6% to $86.1 billion in 2024, making it the fifth highest globally, according to the Stockholm International Peace Research Institute (SIPRI). This spending was nearly nine times greater than Pakistan’s ($10.2 billion), amid heightened tensions following the Pahalgam attack. China, Asia’s top spender, allocated an estimated $314 billion—a 7% rise—marking 30 consecutive years of growth. Globally, the US, China, Russia, Germany, and India accounted for 60% of all military spending.
Why it matters to India
India’s growing defence outlay underscores its efforts to modernise military capabilities amid increasing regional threats, particularly from China and Pakistan. As China expands its cyber and nuclear capabilities, India’s relative military preparedness remains a key strategic concern. Pakistan’s comparatively lower spending may not offset its asymmetric tactics, especially with alleged cross-border activities. Additionally, sustained global militarisation—especially in Europe—highlights the importance of India maintaining robust defence deterrence in a volatile geopolitical environment.