1 hr ago

India’s Defence Spending Trails China Despite Asia’s Second Rank

India spends the second-most on defence in Asia, excluding Japan.

However, China spends more than three times as much in total.

India also uses a smaller share of its budget to buy new weapons and equipment.

Much of India’s money goes toward salaries, pensions, operations and maintenance.

This means India spends less on each soldier than China and has fewer major military assets.

India still imports many weapons, but those imports have been declining as local production grows.

Equipment used during Operation Sindoor helped show that some Indian-made systems can work in combat.

The government is directing more defence purchases toward Indian companies.

Jefferies expects domestic defence spending to grow faster than total defence capital spending in the coming years.

Key facts

India’s Asian rank: Second-largest defence spender in Asia, excluding Japan.
India versus China: India’s overall defence budget is less than one-third of China’s.
Capital spending: About 25% of India’s defence budget, compared with an estimated 40–60% in China and the United States.
Spending per soldier: India spends less than half as much per soldier as China.
Military assets: India has about 18 submarines, 2,183 aircraft and 3,913 tanks.
Arms imports: India accounted for about 9% of global defence imports in 2025 and remained one of the top two importers.
Capital-spending outlook: India’s overall defence capital spending is projected to grow 10% annually through 2030, while domestic spending is projected to grow 16% annually.
Domestic procurement: 75% of the capital procurement budget is earmarked for domestic sourcing.

financialexpress.com · 1 hr ago