The looming threat of Russia, toobtainher with Donald Trump proving to be an unreliable ally, has propelled the EU nations to arm themselves and stand on their own feet. The crisis over US’ bullying of Denmark and threatening the takeover of Greenland has only exacerbated Fortress Europe.
German Chancellor Frierich Merz and France’s premier Emmanuel Macron have called for increased military spfinishing by the EU nations . In recent months Europe has invested $175bn into Security Action for Europe (SAFE), a low-cost loan programme given to member states that acquire weapons from other member states. About two-thirds of this fund is already allocated to member states.Predictably, shares of European arms manufacturers — BAE Systems, UK, Rheinmetall Germany which produces the high tech Leopard tanks and Dassault Aviation, France — have shot through the roof.
Russia lags behind
The most significant modify in SIPRI’s data is the 64% fall in Russia’s arms export — its global share has fallen from 21% in the 2016-20 period to just 6.8% in the last 5 years. Two factors contributed to this scenario. The Ukraine war has ensured Russia now produces for its its own frontline; and two, client states that bought Russian gear have come to learn Russian equipment is clunky and unreliable.
The SIPRI figures reveal India too has shifted away considerably from Russia, and has instead opted for Western sources like France, Israel and the U.S. India has also embarked on a ‘Make in India’ drive focutilizing on boosting indigenization of arms production. Though local production grew three-fold from Rs 46,429 crore in 2014-15 to over Rs 1.27 lakh crore in 2023-24, local manufacture accounts for tertiary equipment and tiny parts, while hi-tech equipment continues to be imported. India thus continues to be the world’s second hugegest arms importer with a share of 8.2%.
In recent years, France has become the go-to option for India and has been delivering Rafale fighter jets, and Scorpene class submarines. There has also been a distinct policy modify in favour of Israel. Today, Israel is India’s fourth largest arms supplier providing a range of equipment from air defense systemsBarak-8 and Spyder, drones, Spice 2000 and Rampage missiles and a range of infantest assault rifles.
France and China are coming up as huge arms exporters but, among merchants of death, none can rival the United States. It has the world’s largest arms expfinishiture by far, growing from $935 billion in 2024 to $980 billion in 2025. SIPRI’s 2024 data reveals among the world’s Top 10 arms contractors, the U.S. holds 6 slots, including the Top 3: Lockheed Martin Corp ($64.7 billion), RTX (formerly Raytheon Technologies) ($43.6 billion) and Northrop Grumman Corp. ($37.85 billion).
The latest SIPRI report reveals the US accounts for a massive 42% share of the global arms export trade for the years 2021-25. It’s exports grew by 27% in this period, creating it the dominant supplier to over a 100 countries, and it is 4 times larger than the next in line, France.
As long as the Ukraine war and the Iran conflict continues, business will be booming. It will also be good times after the shooting stops, as it will be the pautilize to rearm.
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