At $76.6B, India's 2021 military expenditure third-highest in world
India in 2021 became the world's third-highest military spender, the Stockholm International Peace Research Institute (SIPRI) said on Monday. SIPRI said India's military spending—amounting to $76.6 billion in 2021—grew by 0.9% from 2020 and by 33% from 2012. Meanwhile, the US and China occupied first and second places on this list. Also, in 2021, world military expenditure reached an all-time high of $2.1 trillion.
Why does this story matter?
India is looking to emerge as one of the world's most powerful militaries and develop a self-reliant modern defense industry. Last year, PM Narendra Modi said, "For the first time after Independence, big reforms are taking place in the defense sector." He said a single-window system—instead of previous policies that were a "hindrance"—was in place, leading to a rise in the industry's confidence.
Total global military expenditure increased by 0.7% in 2021
SIPRI noted the overall global military expenditure rose by 0.7% in real terms last year, reaching $2.113 trillion. "The five largest spenders in 2021 were the United States, China, India, the United Kingdom, and Russia, together accounting for 62% of [total] expenditure," SIPRI said in a statement. "Even amid the economic fallout of the COVID-19 pandemic, world military spending hit record levels," it added.
64% of India's defense budget for domestically-produced arms
India's border disputes with China and Pakistan have led it to prioritize its armed forces, noted SIPRI. Its report said that 64% of capital allocations in India's defense budget for 2021 were earmarked for acquiring domestically-produced arms. "Amid ongoing tensions and border disputes with China and Pakistan...India has prioritized the modernization of its armed forces and self-reliance in arms production," according to SIPRI.
Military spendings of US, China in 2021
With a decline of 1.4%, the US military's spending was down to $801 billion in 2021, SIPRI's report said. It also mentioned that between 2012 and 2021, the US raised funding for military research and development by 24%, but reduced spending on arms purchases by 6.4%. Meanwhile, China witnessed an increase of 4.7% in military spending to $293 billion in 2021 compared to 2020.
UK in 4th place; Russia 5th highest military spender
On the other hand, the UK spent $68.4 billion on defense in 2021—a rise of 3% from 2020. Russia secured the fifth spot, according to SIPRI. "Russia increased its military expenditure by 2.9% in 2021, to $65.9 billion, at a time when it was building up its forces along the Ukrainian border. This was the third consecutive year of growth," the institute's statement said.
Russia increased military spending due to high energy prices
Lucie Beraud-Sudreau, the Director of SIPRI's Military Expenditure and Arms Production Programme, said Russia could raise its military spending in 2021 because of high energy prices. Russia's military spending accounted for 4.1% of its GDP in 2021. During 2016-2019, Russia saw a drop in military spending due to low prices of oil and gas as well as sanctions imposed on it following Crimea's annexation.