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

Global military spending hit a record $2.46 trillion in 2025, up from $2.24 trillion in 2023, according to the Institute for International Strategic Research (IISS). This dramatic growth is due to growing security threats, rising global tensions and ongoing conflicts in Europe, the Middle East, North Africa (MENA) and Asia.

The state strengthens its military by investing in new technologies, expanding its naval fleet and ensuring critical locations. The United States, China and Russia remained the highest spenders, while India ranked fourth, indicating its focus on defense. With the shift in alliances and new threats emerging, the military budget reflects the priorities of each country in an increasingly uncertain world.

Source: GlobalFirepower

Global Military Spending Trends in 2025

Governments around the world are allocating record defense budgets to modernize military infrastructure, develop advanced weapons and strengthen border security.

Top 10 countries in defense budget (2025)

rank

nation

Defense Budget 2025 (USD)

1

USA

$895 billion

2

China

$266.85 billion

3

Russia

$126 billion

4

India

$75 billion

5

Saudi Arabia

$74.76 billion

6

U.K.

$71.5 billion

7

Japan

$57 billion

8

Australia

$5.7 billion

9

France

$55 billion

10

Ukraine

$53.7 billion

Key observations:

  • The United States maintains its dominance with a $895 billion defense budget.
  • China is the second largest shareholder, with $266.85 billion in military enhancement allocated.
  • Russia has raised its budget to $126 billion due to ongoing conflict.
  • India ranked fourth, increasing its defense allocation to $75 billion.
  • Ukraine entered the top ten due to conflict with Russia.

Detailed analysis of India’s defense spending in 2025

India’s global military rankings

India ranked fourth in the 2025 Global Firepower Index with a power score of 0.1184. The country continues to increase its defense budget to modernize its modern forces and respond to evolving security threats.

Union Budget 2025: Defense Allocation

  • The Indian government has allocated Rs 681 crore to the defense part.
  • This accounts for 13.45% of the total national budget, making it the highest allocation of all ministries.

Key areas of defense investment

India’s defense spending is strategically targeted at:

  • Acquisition of advanced fighter jets, warships and submarines.
  • Promote Indigenous Defense Production under the “Made in India” program.
  • Enhance cybersecurity and space defense capabilities.
  • Strengthen border security along China and Pakistan.

Why does the country increase its defense budget?

Several geopolitical and technical factors are driving a surge in military spending:

1. Geopolitical tensions rise

  • Russia-Ukraine war continues to escalate, prompting increased defense investment across Europe.
  • Tensions in Taiwang, China in the South China Sea and territorial disputes are exacerbating security issues.
  • NATO expansion and frequent military exercises have led to countermeasures from Russia and China.

2. Technological advances in war

  • Countries are developing hypersonic missiles and investing in AI-powered military technology and cyber warfare.
  • The increasing emphasis on nuclear deterrence and space warfare is contributing to higher military budgets.

3. Strengthen strategic alliances

  • Military alliances, such as India’s quadrilateral partnership with the United States, Japan and Australia, have led to an increase in common defense spending.
  • Countries are establishing strategic alliances to respond to common threats and further expand defense spending.

The future of global defense spending

As security challenges continue to develop, military spending is expected to rise further in the coming years. The development of next-generation weapons, the expansion of strategic alliances, and the advancement of cyberWalfa will shape the future defense budget.

India’s defense roadmap

  • It aims to reduce import dependence on self-reliance in military production.
  • Expand defense exports as part of its long-term economic and security strategy.
  • Strengthen border security infrastructure to deal with regional threats.

With the rapidly developing geopolitical environment of countries, defense spending will remain a key aspect of global national security planning.

in conclusion

Global military spending has soared to $2.46 trillion in 2025, reflecting geopolitical tensions and evolving security threats. The United States, China and Russia remain the highest spenders, while India’s budget is $75 billion, highlighting its commitment to modernization, self-reliance and strategic defense enhancement.

Investments in AI-driven warfare, cyber defense and space security are growing, indicating a shift to technologically advanced military capabilities. As the alliance strengthens and regional conflicts intensify, global defense spending will continue to rise, shaping the future of global war and national security policies.