Context:
Recently, the 2024 edition of the “Trends in World Military Expenditure” report was released by the Stockholm International Peace Research Institute (SIPRI).
Key findings of the report
• In 2024, global military expenditure reached an all-time high of USD 2718 billion, marking a 9.4 percent increase in real terms and accounting for 2.5 percent of the global GDP.
- This represents the tenth consecutive year of rising defence spending.
• With a combined spending of US$1,981 billion, the top 10 countries accounted for 73% of the world’s military spending in 2024.
• The five biggest spenders in 2024 were the United States, China, Russia, Germany and India, which together accounted for 60 percent of world military spending.
• The USA’s military spending was $997 billion in 2024, while China’s was an estimated $314 billion.
• China’s military expenditure increased by 7% to an estimated $314 billion, marking three decades of consecutive growth.
- China’s military expenditure in 2024 exceeds the combined defence spending of India, Japan, South Korea, and Australia.
• The military spending in Europe (including Russia) rose by 17% to USD 693 billion and was the main contributor to the global increase in 2024.
• Russia’s military spending grew by 38 percent in 2024 to an estimated $149 billion, equivalent to 7.1 percent of Russia’s GDP.
• Ukraine was the eighth largest military spender in 2024, with spending increasing by 2.9 percent to $64.7 billion, representing 34 percent of its GDP, equivalent to 43% of Russia’s spending.
India-Specific Findings
- India, considered the world’s largest arms importer, accounts for 3.2 per cent of global military expenditure, trailing behind the top three countries: the United States, China, and Russia.
- It was the fifth biggest military spender in the world in 2024. It increased its spending to $86.1 billion, up by 1.6 percent from 2023 and by 42 percent from 2015.
- India’s military spending was nearly nine times higher than Pakistan’s in 2024.
- Pakistan spent USD 10.2 billion, placing it at the 29th position.
- India has put in place a policy aimed at reducing its reliance on arms imports.
- The policy, which earmarks 75 per cent of Indian capital outlays, equivalent to 22 percent of total military spending, to fund domestic military procurement, has made significant progress over the years.
About the Stockholm International Peace Research Institute (SIPRI)
- It is an independent international institute dedicated to research on issues related to conflict, armaments, arms control, and disarmament.
- SIPRI was established in 1966 and it provides data, analysis, and recommendations based on open sources.
- Headquarters: Stockholm, Sweden.
- Funding: It receives funding from the Swedish government and various other organizations.
Mains Question:
Despite allocating more than 20 percent of its total military spending towards domestic defence procurement and making notable progress, India remains one of the world’s largest arms importers. Critically examine the challenges impeding self-reliance in the defence sector and suggest measures to achieve indigenisation.