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President Donald Trump hailed pledges on June 25 by NATO leaders to significantly increase military spending. The alliance announced a new spending target — which requires each country to annually spend 5 percent on its defense by 2035.

President Donald Trump said on June 25 that it was “terrible” that Spain is declining to increase its spending like other allies. He suggested he would seek to punish the country in ongoing trade negotiations.

The paper analyses role of military spending and number of military personnel in India and Pakistan in conflict mitigation. The paper finds that Pakistan’s military spending is a cause of deterrence from Indian hegemony in the region confirming the defence literature that puts the role of military as a strategic asset for a country. The paper also suggests that both democracy and economic development puts downward pressures on India and Pakistan hostilities however democracy is not a sufficient condition in itself to mitigate conflict. The innovation of the paper is that it constructs real proxies of conflict from the defence literature and utilizes defence spending in the analysis as a means to a peaceful resolution between bilateral issues within South Asian region.