India shells out $55.9 billion in military spending, becomes fifth largest in the world

India clinched the fifth place in the list of the world's highest spenders on defence in 2016, according to a recent report by Stockholm International Peace Research Institute (SIPRI). The report stated that global expenditure on defence has increased for a second consecutive year to $1,686 billion.

India's military expenditure reportedly increased by 8.5 percent last year to $55.9 billion, the SIPRI report on defence spending noted.

The United States remained at the top of the list as it saw its military spending growing by 1.7 percent between 2015 and 2016 to $611 billion. The second largest spender in the list was China, whose spending increased by 5.4 percent to $215 billion.

The report said that China's spending growth rate was much lower than what it has witnessed in previous years.

Russia also saw a hike in its defence spending by 5.9 percent to $69.2 billion, and replaced Saudi Arabia to become the third largest military spender in the list. Saudi Arabia stood at the fourth position, as the kingdom's spending fell by 30 percent to $63.7 billion, even though it was involved in regional conflicts in recent years.

The SIPRI figures stated that the global military expenditure in total increased by 0.4 percent over 2015 in real terms.

The global expenditure hiked to a total of $1686 billion, marking its first consecutive annual increase since 2011.

"The growth in US military expenditure in 2016 may signal the end of a trend of decrease in spending, which resulted from the economic crisis and the withdrawal of US troops from Afghanistan and Iraq," the report said.

India, in the February budget, increased its allocation for defence in 2017-2018 by 6 percent to Rs 2.74 lakh crore. A sum of Rs 86,488 crore was also allocated for military modernisation plans. New Delhi's military spending has averaged an annual increase of 10 percent during the last three years. The figures are not impressive to the military which is looking to increase its capabilities.

The Stockholm International also said that the military spending in North America witnessed its first annual increase since 2010. Spending in Western Europe also increased for the second consecutive year.

Military spending continued to grow in Asia and Oceania, Central and Eastern Europe and North Africa. However, the report noted a decrease in spending in Central America and the Caribbean, the Middle East, South America and sub-Saharan Africa.