India has been working its way towards becoming world's third largest military spender in next two years.

India will surpass UK and Saudi Arabia in this race if it continued to operate and spend like this. However, the first and second spot will continue to be occupied by the US with $622.3 billion and China with $191.75 billion that was mentioned in Jane’s Report, released by research firm IHS Markit on Dec. 12, 2016.

Last year, the third largest economy spent $46.6 billion, whereas this year the expenditure is about $50.6 billion, overtaking Saudi Arabia whose defense spending this year is $48.68 billion.

While Russia was at the fourth place last year, in 2016, it slipped to the sixth spot. Currently the Russian defense spending is $48.44 billion.

The report states that by 2018, India will become the third-largest in the group, surpassing the UK whose current military expenditure is $53.81 billion.

“Procurement spending has been constrained in India over the last three years as personnel costs have increased,” Craig Caffrey, principal analyst, IHS Jane’s, said in a statement.

“However, what we expect to see from 2017 onwards is a military focused on modernization. India needs new equipment to fulfill its modernization drive. Over the next three years, India will re-emerge as a key growth market for defense suppliers.” Caffrey added.

In 2016, the total global defence spending increased to $1.57 trillion.

In 2014, India purchased some Rs 36,900 crore ($5.57 billion) worth of arms, ammunition, and related goods from abroad. Earlier this year, India also signed a €7.8-billion (around Rs58,000 crore) deal to buy 36 Rafale fighter jets from France.