Top 10 Countries with the Highest Military Spending in 2026

Every year, many nations spend on their armed forces to increase their defence mechanisms. Recently, in April 2026, the Stockholm International Peace Research Institute (SIPRI) released data on the top countries with the highest military spending. 

According to SIPRI, world military spending has increased by 2.9 per cent in real terms to reach $2887 billion in 2025, which is the 11th consecutive year of growth in military expenditure.

These spending covers the payment for troops, arms, planes, ships, missiles and the development of new technologies. So, for the UPSC aspirant, this topic is directly relevant in their GS Paper II (International Relations) and GS Paper III (Internal Security and Defence) for their mains answer writing.

So, go through this article, and stick these notes to your study material, as UPSC is asking every year on defence budgets, India's military modernisation, and global security architecture.

What is Military Expenditure?

According to SIPRI, military expenditure comprises all expenditure on the following:

• Armed forces (including peacekeeping missions)

• Defence ministries and government agencies related to defence.

• Paramilitary units are trained to fight a war.

• Military space activities

• Wages and pensions, procurement and research and development.

Top 10 Countries with the Highest Military Spending in 2026

Here is the table in which the top 10 countries are listed by military spending:

All values are in current 2025 USD. Source: SIPRI, April 2026

Top Country-wise Analysis with the Highest Military Spending

1. United States

The United States spent around $954 billion in 2025 for the military, which is the highest military spending in the world, representing 33% of the world's military spending. But this spending was 7.5% lower than in 2024. 

This decline was primarily due to the decrease in financial and military assistance to Ukraine and Israel from special additional budgets in prior years. Despite this decline, the expenditure of the US was still almost three times that of China.

2. China

China is second with an estimated spending of $336 billion. It saw the largest increase in spending in its 10-year history in 2025 (+7.4%). China has been raising its military spending for 31 straight years. By 2035, modernisation of the People's Liberation Army (PLA) is the emphasis in all military fields. The prototype of the sixth generation fighter aircraft was tested in 2025 by China.

3. Russia

Russia's estimated spending in 2025 was $190 billion, increasing 5.9%. With respect to military expenditures, it is one of the largest spenders among the major economies, accounting for 7.5% of its GDP. This increased expenditure is directly linked to the conflict in Ukraine. Russia is spending almost a fifth of its entire government budget on the military, a record high.

4. Germany

The rise to 4th place of Germany is remarkable. In 2025, it spent $114 billion, representing a 24% increase from the previous year. Germany has enjoyed double-digit growth year on year for the third time. For the first time since 1990, it has been spending more than 2% of GDP on the military. Germany has committed to 3.5% of its GDP by 2029.

5. India

In 2025, India's military spending is estimated at $92.1 billion, representing 8.9% of the country's total expenditures. Indian military expenditure represents 2.3% of the GDP. The mid-year defence budget revision was a result of India-Pakistan conflict in May 2025 which involved aircraft, drones and missiles. The original capital investment planned for military aircraft was revised 50% to be larger.

What is the regional military spending? 

If we check the regional military spending, then America has around $1,065 billion in 2025, which shares 37% of the world's spending. Below in the table are all the regions of their spending in military, including America, Europe, Asia, the Middle East, and Africa:

Europe's share has grown by 11 percentage points over the past decade, driven by the Russia-Ukraine war and concerns about the US commitment to NATO.

What are the new spending targets of NATO member countries?

All 32 NATO member states together spent $1,581 billion in 2025, which is 55% of total world military spending. In June 2025, NATO members agreed to raise their collective spending target to 5% of GDP by 2035. Out of this, at least 3.5% must go to core military spending. This is a major increase from the older target of 2% of GDP agreed in 2014.

Among NATO members, Poland had the highest military burden at 4.5% of GDP in 2025.

Quick Revision Table

Where Does India Stand in Military Spending?

India's rise to 5th place in global military spending reflects its growing strategic defence mechanisms.

These are the few factors behind India’s military spending: 

• India is a neighbour to two countries which have nuclear weapons, which are China and Pakistan, both of which have made a significant rise in their military budget. Emergency changes in the defence budget were made following the war with Pakistan in May 2025. 

• Under the ‘Make in India’ initiative, India is also investing a huge amount in the indigenisation of defence production under GS Paper III.

• Fighter aircraft, naval warships, missile systems and drone technology are all part of India's defence modernisation. This is in line with the government's objective of decreasing reliance on foreign weapons.

So, the 2026 SIPRI data highlights a record $2,887 billion in global military spending, driven by geopolitical tensions. For UPSC aspirants, tracking these shifts, including India’s rise to fifth place amid modernisation and regional conflicts, is vital for understanding the evolving dynamics of global security architecture and international relations.