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India’s Ministry of Defence was allocated ₹6,81,210.27 crore for FY2025–26, according to the Government of India. Separately, SIPRI estimates that India’s military expenditure was $92.1 billion in calendar year 2025, making it the world’s fifth-largest spender that year. These figures measure different things over different periods, so they should not be treated as two versions of the same total.
India’s defence budget for FY2025–26
The Government of India’s Union Budget allocated ₹6,81,210.27 crore to the Ministry of Defence (MoD) for the financial year running from April 2025 through March 2026. The official release described this as a 9.53% increase over the FY2024–25 Budget Estimate and 13.45% of the Union Budget. These are budget allocations, not a final account of how much was spent during the year. Government of India, Ministry of Defence, 1 February 2025.
| FY2025–26 MoD budget component | Allocation |
|---|---|
| Capital outlay on defence services | ₹1,80,000 crore |
| Revenue allocation for the armed forces | ₹3,11,732.30 crore |
| Defence pensions | ₹1,60,795 crore |
| MoD civil organisations | ₹28,682.97 crore |
The categories show why a single “defence budget” figure needs context: the ministry total includes pensions and civil organisations as well as armed-forces revenue and capital spending. The release establishes the allocation, not the final FY2025–26 expenditure outturn.
How India compares internationally
SIPRI estimates India’s military expenditure at $92.1 billion in calendar year 2025, an 8.9% increase from the previous year. On SIPRI’s estimate, India was the fifth-largest military spender worldwide in 2025. The figure and ranking are SIPRI’s, rather than a direct conversion of India’s rupee-denominated FY2025–26 MoD allocation. SIPRI, April 2026.
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Why the two figures are not interchangeable
Different periods
The ₹6,81,210.27 crore figure is a government allocation for India’s fiscal year, FY2025–26. SIPRI’s $92.1 billion figure is an estimate for calendar year 2025. Those periods overlap but do not match.
Different scopes
The MoD figure is a Union Budget ministry allocation organized by Indian budget heads. SIPRI seeks to measure current spending on military forces and activities using its own definition. Its scope can include personnel, operations and maintenance, procurement, military research and development, military construction, and military aid. It covers armed forces, defence ministries and other government agencies engaged in defence projects, qualifying paramilitary forces, and military space activities where applicable. SIPRI excludes civil defence and certain costs tied to past military activity, including veterans’ benefits and demobilization. SIPRI’s definition and methodology.
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SIPRI says its military-expenditure data are based on open sources. It draws especially on national budgets and public-finance documents, then estimates where official reporting does not fit its definition or does not provide a consistent series. As a result, its estimate may not equal one ministry’s budget headline.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to make a fair comparison
- Use the same year and accounting period for each country. For international comparisons, SIPRI’s country figures are reported on a calendar-year basis for dollar, GDP-share and per-capita measures.
- Keep the unit consistent: compare current dollars with current dollars, constant dollars with constant dollars, or use the same GDP-share or per-capita measure throughout.
- Label each number as an allocation, revised estimate, actual outturn or SIPRI estimate. A budget estimate is not proof of final spending.
- When tracking changes over time, use a single SIPRI database edition. SIPRI revises series as methods and source data are updated; its current database describes country series through 2025 and uses 2024 as the constant-dollar base year. SIPRI Military Expenditure Database.
For India’s FY2025–26 allocation, the Government’s release is the appropriate source. For comparing countries’ military expenditure in calendar 2025, SIPRI’s estimate is the comparable measure provided here. Neither should be silently substituted for the other.
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