Military expenditure across Asia experienced a significant surge in 2025, marking the fastest annual growth since 2009 as escalating regional tensions and security concerns prompted countries to enhance their defence budgets. The Stockholm International Peace Research Institute (SIPRI) reported that Asia’s military spending reached $681 billion in 2025, reflecting an 8.1 percent increase from the previous year.
On a global scale, defence spending rose to $2.887 trillion, representing a real-term increase of 2.9 percent compared to 2024. The United States, China, and Russia continued to dominate global military expenditures, collectively accounting for approximately $1.48 trillion, or 51 percent of worldwide defence outlays.
China, the world’s second-largest military spender, raised its defence budget by 7.4 percent to $336 billion in 2025. This marks the 31st consecutive year of growth as Beijing advances its military modernization initiatives. India, ranked fifth globally, increased its military spending by 8.9 percent to $92.1 billion, reflecting its ongoing commitment to strengthening defence capabilities.
Pakistan, a long-standing rival of India, also expanded its defence budget by 11 percent to $11.9 billion, continuing an upward trajectory despite maintaining a significantly lower overall expenditure compared to India.
Elsewhere in the region, Japan boosted its military spending by 9.7 percent to $62.2 billion, reaching 1.4 percent of its gross domestic product—the highest level since 1958. Taiwan recorded one of the steepest rises, with defence spending climbing 14 percent to $18.2 billion, equivalent to 2.1 percent of GDP, amid increased military activity by China around the island.
In a significant development, US allies in Asia and Oceania, including Australia, Japan, and the Philippines, have also increased their defence budgets. This trend reflects growing regional tensions and uncertainty regarding the future of US security commitments in the area.
