International ReportsImportant2025-04-28

SIPRI Trends in World Military Expenditure 2024

In News

What Happened

The Stockholm International Peace Research Institute (SIPRI) released its annual report in April 2025 detailing global military spending for 2024. Global military expenditure rose by 9.4 percent to reach an all-time high of $2,718 billion. India ranked as the fifth-largest military spender globally with an outlay of $86.1 billion, trailing behind the US, China, Russia, and Germany.

Why It Matters

This report highlights increasing global militarization amid geopolitical tensions. For India, slipping to the fifth position despite high spending underscores the pressing need for the indigenisation of its defence sector to optimize capital expenditure and reduce costly import dependency.

Background

History & Context

SIPRI, established in 1966 in Sweden, provides independent data on armed conflicts, weapons, and military spending. India has consistently remained in the top five military spenders over the past decade due to ongoing dual-front border challenges with China and Pakistan. Recent Indian defence budgets have increasingly earmarked a higher percentage of the capital acquisition budget for domestic procurement to promote 'Aatmanirbharta' (self-reliance) and manage rising pension and revenue expenditures.

What Changed

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Global Spending: BEFORE global military expenditure saw moderate growth in recent years, NOW it has surged by 9.4 percent in a single year to $2,718 billion in 2024.
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India's Ranking: BEFORE India was the fourth-largest military spender globally in the previous reporting cycle, NOW it is ranked fifth after being overtaken by Germany.
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Top Spenders List: BEFORE the top four were the US, China, Russia, and India, NOW the top four are the US, China, Russia, and Germany.

Prelims Angle

NCERT Connection

This event directly relates to the concept of 'Public Expenditure' in the Class 12 Macroeconomics NCERT chapter on the 'Government Budget and the Economy'. High defence spending reflects a substantial allocation of government resources, divided into revenue expenditure (salaries, pensions) and capital expenditure (asset creation, modernization).

Practice Questions

Q1

Correct Statement(s)

Which of the following statements regarding the SIPRI Trends in World Military Expenditure 2024 report is/are correct? 1. Global military expenditure witnessed a decline compared to the previous year due to global economic slowdown. 2. India is ranked as the fourth-largest military spender in the world, retaining its position from the previous year.

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