Countries with the Highest Defence Budget: Global spending on defense has reached a record high of $2.46 trillion in 2024, according to a new report by the International Institute of Strategic Studies (IISS). This is a big jump from $2.24 trillion in 2023. On average, countries are now spending 1.9% of their total economic output, or GDP, on defense. This is higher than the 1.6% in 2022 and 1.8% in 2023.
The main reasons for this increase are growing security concerns and rising tensions in regions like Europe, the Middle East, North Africa, and Asia. Additionally, lower inflation rates have allowed countries to focus on building new military capabilities instead of just covering higher costs for operations and salaries.
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The United States remains the world’s biggest military spender, accounting for 62.3% of the total spending by the top five countries. China and Russia follow, with 18.6% and 8.8% respectively, as per the GlobalFirepower Index.
Top 10 Countries with the Highest Defence Budget in 2025
In 2025, many countries are boosting their defense budgets to strengthen their military power and influence in an unpredictable world. Here are the top 10 countries with the highest defense budgets:
| Rank 2025 | Country | Defence Budget 2025 (USD) |
| 1 | United States | $895,000,000,000 ($895 billion) |
| 2 | China | $266,850,000,000 ($266.85 billion) |
| 3 | Russia | $126,000,000,000 ($126 billion) |
| 4 | India | $75,000,000,000 ($75 billion) |
| 5 | Saudi Arabia | $74,760,000,000 ($74.76 billion) |
| 6 | United Kingdom | $71,500,540,000 ($71.5 billion) |
| 7 | Japan | $57,000,000,000 ($57 billion) |
| 8 | Australia | $55,700,000,000 ($55.7 billion) |
| 9 | France | $55,000,000,000 ($55 billion) |
| 10 | Ukraine | $53,700,000,000 ($53.7 billion) |
Source: Global Firepower Ranking 2025
India is now one of the top military powers in the world, ranking fourth on the Global Firepower Index. The country is steadily increasing its defense spending to modernize its armed forces and prepare for modern warfare challenges.
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In the 2025 Union Budget, India allocated Rs 6.81 lakh crore (about $75 billion) to defense, which is 13.45% of the total budget. This is a 9.5% increase from the previous year, making India one of the largest military spenders globally.
