NEW DELHI — A ceasefire ending a brief but intense missile exchange between India and Pakistan went into effect on May 10, 2025. The agreement halted hostilities but initiated a renewed arms race between the two nuclear-armed neighbors.
India’s military expenditure rose 8.9% in 2025 to $92.1 billion, making it the world’s fifth-largest military spender, according to the Stockholm International Peace Research Institute. Pakistan’s defense budget increased by 11% the same year to $11.9 billion. Both countries plan further increases for 2026–2027, with India raising its budget by 15.2% and Pakistan by 13.5%.
The 2025 conflict was triggered by a militant attack on tourists in Indian-administered Kashmir. During the exchange, both nations deployed long-range precision missiles, modern fighter jets with enhanced firing capabilities, and surveillance and combat drones over cities far from traditional front lines. Artificial intelligence assisted with surveillance and drone coordination.
"The India-Pakistan relationship remains crisis-prone," said Praveen Donthi, senior India analyst at the International Crisis Group. "Last year’s ceasefire froze the conflict and triggered a race for defense acquisitions based on the lessons learnt."
Michael Kugelman, senior fellow for South Asia at the Atlantic Council, added, "One of the more unsettling takeaways from last year’s conflict is that India and Pakistan have clearly become quite comfortable using increasing amounts of limited conventional force below the nuclear threshold."
Since the May 2025 ceasefire, Pakistan has strengthened defense ties with Turkey and China. China supplies much of Pakistan’s military hardware, including systems used in the 2025 conflict. In May 2026, Pakistan’s navy received its first of eight Hangor-class submarines from China.
India has expanded defense cooperation with Israel, France, and Russia since the 2025 ceasefire. It plans to acquire 114 additional Dassault Rafale fighter jets from France and S-400 air defense systems from Russia. Joint production agreements with Israeli and French firms now cover drones and precision-guided weapons. Indian officials are also in talks with Israel about developing an indigenous Iron Dome system called Mission Sudarshan Chakra.
"We are moving into what strategists term ‘hybrid warfare,’” said Amalendu Misra, professor of international politics at Lancaster University. The 2025 conflict reinforced a belief that hybrid wars—combining advanced technology, formal military operations, and unconventional tactics like disinformation—can be fought and contained under the nuclear threshold.