According to the global Stockholm International Peace Research Institute (SIPRI), India’s military expenditure in 2023 was a whopping $83.6 billion. This marked a 4.2% increase from the preceding year, positioning India as the fourth largest military spender in the world, after the United States, China, and Russia. The increase in investment was in line with India’s focus on modernizing its military capabilities and strengthening its infrastructure, particularly along the China border.
In 2023, the world saw an unprecedented rise in military spending. SIPRI reported a global expenditure of $2443 billion, the highest since 2009. Interestingly, the surge was seen across all geographical regions, particularly in Asia, Europe, Oceania, and the Middle East. The increase was attributed to the deteriorating global peace and security scenario.
Major Military Spenders
The U.S. led the pack with an expenditure of $916 billion, marking a 2.2% increase. China followed with a budget of $296 billion, up by 6%. Russia’s defence spending stood at $109 billion, a significant 57% rise compared to 2022. Ukraine’s defence budget also saw a significant hike of 51%, reaching $64.8 billion in 2023.
| Country | Defence Expenditure (in billion USD) | Percentage Increase |
|---|---|---|
| India | $83.6 | 4.2% |
| Russia | $109 | 57% |
| Ukraine | $64.8 | 51% |
| US | $916 | 2.2% |
| China | $296 | 6.0% |
India’s Defence Modernization Efforts
India’s increased defence spending is part of a broader strategy to modernize its military capabilities. The focus is on procuring advanced fighter jets, helicopters, warships, tanks, artillery guns, rockets, and missiles and developing unmanned capabilities and other combat systems. The country is also investing heavily in enhancing its infrastructure along its borders, particularly with China.
In February 2023, India allocated ₹6.21 lakh crore for defence spending in the interim budget for 2024-25. This accounted for 1.89% of the country’s projected GDP for 2024-25. The budget comprised revenue expenditures of ₹2.82 lakh crore, capital expenditures of ₹1.72 lakh crore, and pension expenditures of ₹1.41 lakh crore.
Security concerns and geopolitical tensions have necessitated robust defence spending globally. As the world’s fourth largest military spender, India continues to prioritize its defence needs and invest in modernizing its military. This trend is expected to continue in the coming years, with India further strengthening its defence capabilities to address evolving security challenges.