India's military expenditure up 8.9% to $92.1bn; Pakistan spending 11% to $11.9bn: Report

Military spending across Asia and Oceania climbed sharply in 2025, reaching $681 billion — an 8.1% increase from the previous year and the steepest annual rise since 2009, Anadolu Agency reported, citing figures released on Monday by the Stockholm International Peace Research Institute.

Globally, defence expenditure stood at $2.887 trillion in 2025, marking a 2.9% increase in real terms compared to 2024.

The United States, China and Russia continued to dominate global military spending. Together, the three countries accounted for $1.48 trillion, or just over half of total global expenditure.

China, the second-largest military spender, raised its defence budget by 7.4% to $336 billion. This marked the 31st consecutive year that Beijing has increased its military spending, as it pushes ahead with efforts to modernise its armed forces. According to SIPRI, an ongoing anti-corruption drive within China’s military procurement system has not slowed the pace of spending.

In South Asia, India retained its position as the world’s fifth-largest military spender, increasing its defence budget by 8.9% to $92.1 billion. Pakistan also recorded a notable rise, with spending up 11% to $11.9 billion.

Elsewhere in the region, Japan boosted its military expenditure by 9.7% to $62.2 billion — equivalent to 1.4% of its gross domestic product, the highest proportion since 1958. Taiwan saw one of the sharpest increases, with spending jumping 14% to $18.2 billion, or 2.1% of its GDP. SIPRI noted this was the largest annual rise for Taiwan since at least 1988, amid heightened military activity by China around the island.

Diego Lopes da Silva, a senior researcher with SIPRI’s Military Expenditure and Arms Production Programme, said that US allies in the region — including Australia, Japan and Philippines — are increasing defence budgets not only due to long-standing regional tensions but also because of growing uncertainty over continued US support.

He added that, similar to trends seen in Europe, Washington has also been urging its allies in Asia and Oceania to spend more on their militaries.

In the Middle East, total military spending was estimated at $218 billion in 2025, showing only a marginal increase of 0.1% compared to the previous year.

Most major countries in the region raised their defence budgets, with the exception of Israel. Its military spending fell by 4.9% to $48.3 billion, reflecting a drop in the intensity of the Gaza conflict following a ceasefire agreement with Hamas in January 2025. Despite the decline, Israel’s military expenditure remains nearly double — up 97% — compared to 2022 levels.