Global arms sales rise to $632 billion in 2023, up 4.2% from 2022: Stockholm International Peace Research Institute Report

The Stockholm International Peace Research Institute (SIPRI) has revealed that global arms sales surged to $632 billion in 2023, marking a 4.2 per cent increase from 2022. This growth has been driven by rising wars, regional conflicts, and geopolitical tensions worldwide.

A significant trend noted in the report is the expansion of arms revenues among a higher number of companies, with 73 companies in the SIPRI Top 100 Arms-Producing and Military Services Companies 2023 reporting revenue growth, up from 47 companies in the previous year.

GLOBAL CONFLICTS FUEL ARMS DEMAND

The ongoing Russia-Ukraine war has led to a significant rise in arms production in Europe and North America, where companies are scaling up manufacturing to meet defence needs.

Similarly, rising tensions in the Indo-Pacific region, driven by power rivalries and maritime disputes, has seen a spike in defence modernisation among Asian countries. The Middle East also remains a hotspot, where regional instability has pushed states to expand their military spending.

DATA HIGHLIGHTS DIFFERENCE BETWEEN 2022 AND 2023

In 2023, 73 companies recorded revenue increases, while only 26 companies reported a decline as compared to 47 companies seeing revenue growth in 2022, while 53 companies experienced a decline.

This shift underscores how global defence industries have capitalised on rising security concerns, increased defence budgets, and urgent arms procurement.

INDIA’S DEFENCE SECTOR, A RISING GLOBAL FORCE

Indian defence companies have solidified their position among the global Top 100, reflecting India’s growing strategic emphasis on defence self-reliance and exports.

Firms like Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BHEL), and other key players like Mazagaon Dockyard Limited (MDL) have benefited from the government’s focus on modernising its military and promoting domestic manufacturing under the Atmanirbhar Bharat (Self-Reliant India) scheme.

In recent years, Indian defence exports have experienced exponential high. In 2023-24, India’s defence exports reached a record high of Rs 21,083 crore. This was a 32.5 per cent increase from the previous fiscal year’s figure of Rs 15,920 crore.

The combination of indigenous innovation, public-private sector collaboration, and strong global demand for Indian-made systems, such as fighter jets, drones, and defence electronics, has driven this momentum.

While the arms industry continues to thrive economically, the increase in global arms sales reflects a concerning trend towards militarisation. Countries are rapidly increasing military spending to secure their interests, but this also risks exacerbating conflicts and geopolitical tensions.

The 4.2 per cent rise in global arms revenues reflects the complex security environment facing the world today. For Indian companies, this period marks a defining moment as they continue to make inroads into the global defence market.