The SIPRI Yearbook 2026 reports a record surge in global military spending to $2.9 trillion in 2025, driven by escalating geopolitical tensions. India has secured its position as the world’s fifth largest military spender with an expenditure of $92.1 billion, marking a significant 8.9% increase. Furthermore, India’s nuclear arsenal has reached 190 warheads, surpassing Pakistan for the first time in overall stockpile size.
Global Military Expenditure Reaches Record $2.9 Trillion
The total global military expenditure in 2025 reached an unprecedented $2.9 trillion, representing a growth for the 11th consecutive year. This massive investment in defence now accounts for approximately 2.5% of the global Gross Domestic Product (GDP). The surge is primarily attributed to prolonged conflicts in Europe and the Middle East, along with heightening tensions in the Indo-Pacific region.
This record spending reflects a global shift toward rearmament. Many nations have prioritized military modernization and stockpiling of conventional weapons to address perceived security threats. The report highlights that the collective spending of the top five countries alone accounts for a significant majority of the world’s total military outlays.
Top Five Military Spenders in 2025
The United States continues to lead global military expenditure, although its spending saw a slight decrease of 7.5% compared to the previous year. China follows as the second largest spender, with an estimated expenditure that has consistently grown for nearly three decades. Russia and Germany occupy the third and fourth positions, respectively.
| Rank | Country | Military Expenditure (2025) |
|---|---|---|
| 1 | United States | $954 Billion |
| 2 | China | $336 Billion (est.) |
| 3 | Russia | $190 Billion |
| 4 | Germany | $114 Billion |
| 5 | India | $92.1 Billion |
While the United States remains the dominant spender, the gap between the top two spenders is gradually narrowing as China continues its military expansion. Russia’s spending remains high due to ongoing military operations, while Germany has significantly increased its defence budget to meet its commitments within the North Atlantic Treaty Organization (NATO).
India’s Defence Spending and Modernization Drive
India’s military spending reached $92.1 billion in 2025, an increase of 8.9% from 2024. This growth was largely driven by the need for rapid modernization and an increased focus on operational readiness along India’s northern and western borders. The report notes that India’s military burden remains at approximately 2.3% of its GDP, which indicates that defence spending is growing in line with the nation’s economic expansion.
Modernization and Regional Challenges
The surge in spending was partly influenced by a major military standoff with Pakistan in May 2025, which necessitated emergency procurement and increased capital outlays for the Indian Air Force (IAF). Capital expenditure for aircraft systems saw a substantial rise as India sought to maintain its technological edge. Additionally, the continued focus on the Atmanirbhar Bharat initiative has led to a significant portion of the procurement budget being directed toward domestic defence industries.
India also remains the world’s second largest arms importer, accounting for 8.2% of global imports between 2021 and 2025. The shift toward indigenous production is aimed at reducing this dependence on foreign suppliers while strengthening the domestic military industrial complex.
Evolution of India’s Nuclear Arsenal
As of January 2026, India’s nuclear stockpile has grown to an estimated 190 warheads. For the first time, India has overtaken Pakistan, which has an estimated 170 warheads, in the total size of its nuclear arsenal. This development marks a significant shift in the strategic balance of South Asia.
The report also identifies a critical change in India’s nuclear posture. SIPRI estimates that India has placed approximately 12 warheads in an operationally “deployed” state for the first time. These warheads are believed to be integrated with India’s sea-based delivery systems, specifically the Arihant-class nuclear-powered ballistic missile submarines (SSBNs). Previously, all Indian warheads were believed to be held in central storage under civilian control.
India continues to mature its nuclear triad, which consists of land, air, and sea-based delivery platforms. The expansion of its arsenal is seen as a move to strengthen its “No First Use” policy by ensuring a credible and survivable second-strike capability, particularly in response to China’s growing nuclear capabilities.
Global Trends in Nuclear Armaments
The SIPRI Yearbook 2026 highlights a concerning trend in global nuclear security. As of January 2026, there are approximately 12,187 nuclear warheads worldwide. All nine nuclear-armed states (the United States, Russia, the United Kingdom, France, China, India, Pakistan, North Korea, and Israel) are currently involved in extensive modernization programs for their nuclear arsenals.
China has seen the most significant expansion, with its stockpile growing to an estimated 620 warheads. The report suggests that China may soon have as many intercontinental ballistic missiles (ICBMs) as either the United States or Russia. While Russia and the United States together possess nearly 90% of all nuclear weapons, their stockpiles have remained relatively stable as they focus on replacing aging systems rather than increasing the total number of warheads.
The transparency regarding nuclear forces has also declined globally. Many nations have reduced the amount of information they share about their nuclear capabilities, leading to increased uncertainty and the potential for a new global nuclear arms race.
About the Stockholm International Peace Research Institute (SIPRI)
The Stockholm International Peace Research Institute (SIPRI) is an independent international institute dedicated to research into conflict, armaments, arms control, and disarmament. Established in 1966, SIPRI provides data, analysis, and recommendations based on open sources to policymakers, researchers, and the media.
Headquartered in Solna, Sweden, the institute is funded by the Swedish government and is widely recognized for its SIPRI Yearbook, which was first published in 1969. The current Director of SIPRI is Karim Haggag, who assumed the post in September 2025. The institute’s mission is to promote transparency in military matters and to contribute to the understanding of the conditions for a peaceful solution of international conflicts.
Key Takeaways
- Global military expenditure reached a record $2.9 trillion in 2025, accounting for 2.5% of the world’s GDP.
- India ranked as the 5th largest military spender in 2025 with an expenditure of $92.1 billion.
- The United States, China, Russia, and Germany were the four largest military spenders globally.
- India’s nuclear arsenal increased to 190 warheads as of January 2026, surpassing Pakistan for the first time.
- For the first time, India has placed approximately 12 nuclear warheads in an operationally deployed state.
- China’s nuclear stockpile grew to an estimated 620 warheads, marking the most significant expansion among nuclear states.
- The Stockholm International Peace Research Institute (SIPRI) was established in 1966 and is headquartered in Solna, Sweden.
