‘India ranks fourth globally in military expenditure’
In 2023, India ranked as the world’s fourth-highest military spender, allocating $83.6 billion to its defence budget, trailing only the United States, China, and Russia. This was highlighted in a report by the Stockholm International Peace Research Institute (SIPRI), which also noted a global increase in military spending due to the ongoing conflict in Ukraine and rising geopolitical tensions across Asia, Oceania, and the Middle East.
The report observed that military spending rose across all regions, with significant hikes in Europe, Asia, Oceania, and the Middle East. This uptick in expenditure comes against the backdrop of various global conflicts, including those involving
Israel-Hamas and Iran-Israel, as well as instability in the Red Sea region.
According to SIPRI, 2023 marked the ninth consecutive year of increased global military spending, which surged by 6.8 per cent to $2443 billion—the sharpest rise since 2009 and the highest amount recorded by the institute. The global military burden, which measures military spending against global GDP, rose to 2.3 per cent.
Furthermore, the average military spending as a percentage of government expenditure increased to 6.9 per cent, and per capita military spending reached $306, the highest since 1990.
India’s defence expenditure saw a 4.2 per cent increase from the previous year and a 44 per cent rise since 2014. The growth in spending was primarily driven by rising personnel and operational costs, which constituted nearly 80 per cent of the total military budget. This aligns with India’s focus on enhancing the operational readiness of its armed forces amidst ongoing tensions with neighbouring countries. Meanwhile, capital investment in military procurement remained stable at about 22 per cent of the budget.
Notably, 75 per cent of India’s capital outlays were directed towards domestically produced equipment, marking the highest level of domestic procurement and reflecting the nation’s aim to achieve self-reliance in arms production.