Rank #5 · Asia-Pacific
India is the world's fifth-largest military spender at $92.1 billion in 2025 (2.3% of GDP), per SIPRI — an 8.9% real-terms increase. The Union Budget 2025-26 allocated a record ₹6.81 lakh crore to the Ministry of Defence, with the Atmanirbhar Bharat self-reliance push driving indigenous procurement of Tejas Mk1A, INS Arihant-class SSBNs, and the Pinaka rocket system. India faces simultaneous deterrence pressures from China along the LAC and Pakistan along the LoC.
The Union Budget 2025-26 (April 2025-March 2026) allocated ₹6,81,210 crore (~$81B) to the Ministry of Defence — a 9.53% increase YoY and the largest single ministry allocation at 13.45% of the Union Budget. Capital outlay is ₹1.80 lakh crore (26.4% of total) for new acquisitions; revenue (operating) for the armed forces is ₹3.12 lakh crore; defence pensions absorb ₹1.61 lakh crore. The FY2026-27 budget tabled in February 2026 raised the MoD allocation 15% to ₹7.85 lakh crore. SIPRI’s $92.1B figure incorporates paramilitary forces (CAPF) and elements outside the headline MoD line. Aircraft and aero-engine procurement saw a ~21% jump, reflecting the 97-Tejas Mk1A and 156-LCH contracts.
India fields ~1.46 million active military personnel — the world's second-largest standing force. The Indian Army (~1.24M) operates 14 corps including the Northern Command facing the LoC and the recently activated Mountain Strike Corps (XVII Corps) for the China front. The Indian Air Force fields ~31 fighter squadrons (target 42), comprising Su-30MKI, Rafale, Tejas, MiG-29, and Mirage 2000. The Indian Navy operates two carriers (INS Vikramaditya, INS Vikrant), four Arihant-class SSBNs (two operational, two under construction), and Kalvari-class diesel-electric submarines. The Strategic Forces Command manages the nuclear triad. Theatre Commands reorganization, announced 2019, remains stalled but is expected by 2026-27.
Atmanirbhar Bharat (self-reliance) policy has lifted the indigenous share of defence procurement to ~75% of the capital budget by FY2025-26. Hindustan Aeronautics Limited (HAL) produces the Tejas Mk1A LCA, Tejas Mk2 in development, and licensed Su-30MKI/Rafale assembly. BEL leads electronics; BDL produces missiles (Akash, BrahMos joint venture with Russia, Astra). Mazagon Dock and Cochin Shipyard build the Kalvari subs and Vikrant carrier. Private sector entrants include Tata, L&T, Mahindra, and Adani Defence. India is the world's largest arms importer (8% of global imports per SIPRI 2020-24), but exports have crossed $2.6B annually in FY2024-25, with BrahMos sales to the Philippines and Vietnam pending.
India faces unresolved disputes on two fronts. The Sino-Indian Line of Actual Control (LAC) remains tense after the 2020 Galwan clash; the October 2024 Demchok and Depsang patrolling agreement reduced friction in eastern Ladakh, but force concentrations remain elevated. The Line of Control with Pakistan saw renewed exchanges following the April 2025 Pahalgam attack and India's subsequent Operation Sindoor strikes (May 2025) targeting Pakistan-based militant infrastructure — the most significant Indo-Pakistani military exchange since 2019. Indian forces also conduct counter-insurgency in Jammu & Kashmir and the Northeast, and contribute the largest UN peacekeeping contingent.
SIPRI ranked India #5 at $92.1B for 2025. The Union Budget 2026-27 (presented February 1, 2026) raised the MoD allocation 15% to ₹7.85 lakh crore. The first Tejas Mk1A was delivered to the IAF in March 2025 after GE F404 engine supply delays; HAL targets 24 deliveries through 2026. INS Arighaat (second SSBN) was commissioned August 2024 with K-4 SLBM. The Indo-French Rafale-M carrier-borne deal (26 jets, ~$7.4B) was signed April 2025. The S-400 Triumf system performed during the May 2025 Indo-Pakistani exchanges, intercepting incoming Pakistani Fatah-II missiles per Indian government statements.
India spent $92.1 billion on its military in 2025 per SIPRI — 2.3% of GDP and the world's fifth-largest defence budget. The Union Budget 2025-26 allocated ₹6.81 lakh crore (~$81B) to the Ministry of Defence; SIPRI adds paramilitary forces and other components to reach the higher figure.
India's self-reliance initiative requiring at least 75% of defence capital procurement to come from domestic sources. The policy has driven indigenous programmes including Tejas Mk1A, Pinaka rockets, BrahMos missiles, and the Arihant-class SSBNs. Defence exports crossed $2.6 billion in FY2024-25, up from $675 million in FY2018-19.
Approximately 180 warheads per FAS, growing slowly. India maintains a no-first-use posture and a triad based on Agni-series IRBMs/ICBMs, Arihant-class SSBNs with K-15 and K-4 SLBMs, and dual-capable Mirage 2000/Rafale aircraft. Agni-V (5,000+ km) is operational and Agni-VI (~8,000 km) is in development.
Russia remains the largest at ~36% of imports (2020-24 SIPRI), followed by France (~33%, driven by Rafale), the United States, and Israel. The Russian share is falling sharply as India diversifies. Domestic production now covers most categories below 5th-generation aircraft.
India fields ~1.46 million active personnel — the world's second-largest standing force after China. The Indian Army alone is ~1.24 million. The Central Armed Police Forces (BSF, CRPF, ITBP, SSB, CISF, Assam Rifles) add another ~1 million paramilitaries.