India’s military spending increases further, defense budget reaches $78 billion

Last Updated on February 3, 2025 7:03 am

India has increased its defense budget by 9.5% to $78 billion for 2025. The latest budget of the government led by Prime Minister Narendra Modi has increased defense spending to 8% of the country’s total GDP, establishing India as the fourth largest defense spender globally after the United States, Russia and China.

According to analysts, while capital spending on defense increased by 4.6% compared to last year, it needs to be higher to achieve India’s military modernization goals, especially in the context of competition with China.

According to international media reports, $5.6 billion has been allocated in the new budget for the purchase of new fighter jets and $2.8 billion for strengthening the fleet.

However, with more than 80 million people still living below the poverty line in India, the huge spending on the military sector is raising questions about the government’s priorities.

Experts say that a large part of the defense budget is spent on pensions and salaries, which remains a significant challenge as always.

Amit Kaushik, a former financial advisor to the Indian Ministry of Defence, said that it has long been a concern that a large portion of the defence budget is spent on pensions and salaries, which continues to be the case.

According to analysts, India’s military expansion strategy could further increase regional tensions, especially in the context of existing geopolitical competition with neighboring countries.