Cost of conflict: How India and Pakistan spend their money on defence

Time of India

10-05-2025

Amidst escalating tensions following the Pahalgam attack and ongoing cross-border conflicts, India's military spending significantly outpaces Pakistan's. India's 2024-25 defense budget reached $86.1 billion, while Pakistan's stood at $10.2 billion. This disparity reflects India's focus on military modernization and indigenous production, contrasting with Pakistan's economic constraints and reliance on foreign aid.
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Operation Sindoor, which the Indian military launched to avenge the Pakistan-sponsored Pahalgam attack, has turned from a one-time strike to extended conflict as Pakistan is attacking dozens of Indian cities with drones and bombing civilians on the LoC and India is responding to the attacks.There is a scope for potential escalation and even a full-scale war. India has over the past few years significantly ramped up its defence capabilities with indigenous manufacturing and key purchases such as Rafale fighter jets. Pakistan too has been a big defence spender but there are stark contrasts with India, shaped by historical, economic, and geopolitical factors.India's military expenditure is significantly higher than Pakistan's, reflecting both the size of the country and its strategic priorities. India's military spending for 2024-25, which ranks fifth-highest in the world, saw a 1.6% increase, totaling $86.1 billion during the year, while Pakistan's military expenditure stood at $10.2 billion, according to data by Stockholm International Peace Research Institute.This disparity in budgets highlights the difference in both scale and ambition, with India investing heavily in modernising its military to strengthen its position.However, the trend of disparity between the two countries' military budgets is nothing new. For years, India has consistently allocated a far larger amount of money to the defence sector. In comparison, Pakistan's defence budget remains smaller, reflecting its economic constraints and a strategic focus on maintaining essential military capabilities.India's defence budget has grown steadily over the past decade. According to data from Macrotrends, India's military spending in 2013 stood at $41 billion, and by 2024, this figure has nearly doubled to $80 billion.This increase reflects India's commitment to building a more modern and technologically advanced military force, capable of defending against regional and global challenges. The rising budget supports significant investments in air force modernisation, naval assets, missile systems, and an expanding nuclear arsenal.One of the primary drivers of India's defence spending is its ongoing efforts to enhance its strategic capabilities. India is working on strengthening its indigenous production of weapons systems, including fighter jets and missile technology, to reduce dependency on foreign suppliers. Projects like the Tejas fighter aircraft and the Agni-series of missiles are part of this self-reliance strategy.Additionally, India is enhancing its cyber warfare and space-based capabilities, crucial for modern warfare.Pakistan's military spending, while considerably lower than India's, continues to be a significant part of its national budget. According to SIPRI data, Pakistan's defence expenditure in 2024 was estimated at $11 billion. Although this figure is relatively modest, it constitutes a significant proportion of Pakistan's GDP, underlining the centrality of defence to its national security strategy.Pakistan's military spending is largely driven by its need to maintain a credible defence against India's conventional superiority. Pakistan's focus remains on ensuring that its military can counterbalance India's larger and more technologically advanced forces.To this end, Pakistan has concentrated its spending on maintaining nuclear capabilities and enhancing its missile systems. The development of tactical nuclear weapons has been a key element of Pakistan's strategy, aimed at deterring any potential conventional attack by India.Pakistan also faces domestic economic challenges that constrain its ability to increase defence spending, making it reliant on foreign aid and loans, particularly from the IMF, China and the US.According to the Global Firepower Index, India ranks 4th globally with a PowerIndex score of 0.1184, while Pakistan stands 12th with a score of 0.2513. In virtually every category—manpower, airpower, naval strength—India holds a formidable advantage.With a population of over 1.4 billion, India commands an available manpower pool of 662 million, compared to Pakistan's 108 million. Active personnel: 1.45 million (India) vs. 654,000 (Pakistan).India operates 2,229 aircraft, including 513 fighters and 130 attack aircraft. Pakistan, in contrast, fields 1,399 aircraft with 328 fighters.India boasts 4,201 tanks and nearly 149,000 armored vehicles, dwarfing Pakistan's 2,627 tanks and 17,500 armored units. Pakistan does hold a lead in mobile rocket systems—600 compared to India's 264.India's navy is a regional juggernaut with 293 vessels, including 2 aircraft carriers, 18 submarines, and 13 destroyers. Pakistan operates 121 vessels and lacks carriers or destroyers.As both nations continue to funnel billions into defence, a pressing question looms large: at what cost? In India, soaring defence budgets compete with urgent social needs—infrastructure, education, healthcare. In Pakistan, persistent economic instability and IMF bailouts already paint a grim picture of overextension. The trajectory for both nations seems clear -- military spending will continue to rise, although at different scales and speeds.