India ranks 4th in global military spending at $83.6 bn in 2023: Report

India has maintained its position as the fourth-highest spender for two consecutive years

India was the world's fourth-largest military spender in 2023, making an expenditure of $83.6 billion to modernise a range of weapons and combat systems, a report has said.

The United States (US), China, and Russia were the top three spenders in that order, according to the Stockholm International Peace Research Institute (Sipri). India's military spending saw a 4.2 per cent increase compared to 2022. This growth reflects India's strategic focus on enhancing its defence capabilities and bolstering military infrastructure, particularly along the China border following the Ladakh standoff that began in May 2020. India's modernisation efforts include investments in fighter jets, helicopters, warships, tanks, artillery guns, rockets, missiles, unmanned capabilities, and other combat systems.

India also held the fourth position in 2022, when military spending reached $81.4 billion. This marked a 6 per cent increase from 2021 and a substantial 47 per cent rise since 2013.

China's military spending

In comparison, China, the world's second-largest military spender, allocated an estimated $296 billion to its military in 2023, a 6 per cent increase from the previous year. Sipri’s report noted that several of China's neighbours have increased their military spending in response to Beijing’ expenditure.

India vs China

The Sipri report comes at a time when India and China have been locked in a standoff along the Line of Actual Control (LAC) in eastern Ladakh since May 2020. The two countries have conducted 21 rounds of military talks to address the border dispute.

On February 1, India allocated Rs 6.21 trillion for defence spending in the interim Budget for 2024-25, marginally lower than the previous year's revised estimates but 4.72 per cent higher than the budget estimates for 2023-24. This year's defence budget represents 1.89 per cent of India's projected gross domestic product (GDP) for 2024-25.

Global military spending

Globally, total military expenditure reached $2443 billion in 2023, marking a 6.8 per cent increase from 2022. The report attributed this surge to ongoing conflicts, rising tensions, and global insecurity.

The US saw a 2.3 per cent increase in military spending, reaching $916 billion, while Russia's military expenditure surged by 24 per cent to an estimated $109 billion amid the war with Ukraine.

Ukraine also experienced a significant spending surge, with military expenditure reaching $64.8 billion, making it the eighth-largest spender in 2023.

"The unprecedented rise in military spending is a direct response to the global deterioration in peace and security," said Nan Tian, Senior Researcher with Sipri’s Military Expenditure and Arms Production Programme.

Top 10 countries with highest military spending in 2023

1. United States: $916 billion

2. China: $296 billion (estimated)

3. Russia: $109 billion (estimated)

4. India: $83.6 billion

5. Saudi Arabia: $75.8 billion (estimated)

6. United Kingdom: $74.9 billion

7. Germany: $66.8 billion

8. Ukraine: $64.8 billion

9. France: $61.3 billion

10. Japan: $50.32 billion