The report presented by the Stockholm International Peace Research Institute (SIPRI) recently highlighted that global military expenditure reached an all-time high of USD 2.1 trillion in 2021, despite the economic setbacks of the pandemic. Interestingly, the world military burden—measured as world military expenditure as a share of world Gross Domestic Product (GDP)—dropped by 0.1 percentage points, moving down from 2.3% in 2020 to 2.2% in 2021. This was due to a speedy economic recovery in the following year.
About SIPRI
Providing insight into this situation is the SIPRI, an independent international institute whose focus is research on conflict, weaponry, arms control, and disarmament. Established in Stockholm, Sweden in 1966, SIPRI’s dedication to peace and conflict resolution has made it a leading authority on global military spending.
Global Military Spending: The Scenario
In 2021, the leading spenders on military worldwide were the US, China, India, the UK, and Russia, in that order. Their combined expenditure constituted 62% of the total, with the US and China alone accounting for 52%.
Military Spending in Asia and Oceania
In the Asia and Oceania region, military spending amounted to USD586 billion in 2021, marking a 3.5% increase from the previous year and continuing a consistent upward trend since at least 1989. Much of this increase can be attributed to the growth in military spending by China and India, which together accounted for 63% of the region’s total military expenditure in 2021.
Rise in Military Expenditure in Russia
Russia saw a 2.9% increase in its military spending in 2021, totaling USD65.9 billion. This rise came amidst Russia’s military build-up along the Ukrainian border, indicating a direct correlation between geopolitical tensions and defense spending.
NATO Members’ Military Spending
In the year 2021, eight European members of the North Atlantic Treaty Organization (NATO) achieved the Alliance’s goal of allotting 2% or more of their GDP on their armed forces. Although this was one member less than the previous year, it still marked a significant increase from only two members in 2014.
Focusing on India
India’s military expenditure for 2021 stood at USD76.6 billion, making it the third highest spender globally. This represented a 0.9% increase from 2020 and a substantial 33% surge from 2012. In light of ongoing issues and border disputes with neighboring countries China and Pakistan, India has pushed to modernize its armed forces and become self-reliant in arms production. This initiative has resulted in 64% of the capital outlays in India’s 2021 military budget being allocated for the procurement of domestically produced arms.
