India's arms imports accounted for 12 per cent of the total arms transfers in the world.
US arms exports surged 25 percent over the five years to 2017, according to data released on Monday by the Stockholm International Peace Research Institute.
The report spotlights India's floundering attempts to make firearms in India.
India, which accounted for 12 percent of global arms purchases, held onto its position as the world's largest importer.
Last year, the government even scrapped the Foreign Investment Promotion Board (FIPB) that scrutinized foreign investment proposals in its desperate attempt to cut red tape and facilitate ease of doing business. "These deals and further major contracts signed in 2017 will ensure that the United States of America remains the largest arms exporter in the coming years".
And India was the world's largest weapons importer, with Russian Federation its main supplier accounting for 62 percent of its imports.
"These deals and further major contracts signed in 2017 will ensure that the U.S. remains the largest arms exporter in the coming years", Dr. Aude Fleurant, director of the SIPRI's arms and military expenditure program, told the Guardian.
As China became increasingly capable of producing its own advanced weapons, its arms exports increased by 38 per cent and its arms imports decreased by 19 per cent in 2013-2017 compared with 2008-2012.
Surprisingly, India's long-time foe has slashed its imports despite its tensions with India and internal conflicts.
The US remained the biggest arms seller, accounting for 34 per cent of global arms exports. "Its imports increased by 24 per cent between 2008-12 and 2013-17".
SIPRI data reflects the volume of deliveries of arms, not the financial value of the deals. A majority of these weapons have been procured by countries in India's neighbourhood.
Almost half of U.S. arms exports over the past five years have gone to the war-stricken Middle East, with Saudi Arabia consolidating its place as the worlds second biggest importer, a report revealed on Monday.
Arms exports to the Middle East, Asia and Oceania increased, while there was a decrease in the flow of arms to Africa, the Americas and Europe.
Pakistan's arms imports decreased by 36% between 2008-12 and 2013-17. China was the fifth largest arms exporter, with Pakistan the main recipient of its arms.
Over the past five years, France has been the most successful country in forging a close relationship with Egypt in the arms industry.
Russia, the world's second biggest exporter, saw a decrease of 7.1% in its overall volume of arms exports; U.S. exports were 58% higher than those of Russia.
The SIPRI report notes deteriorating ties between the USA and Pakistan, stemming from the perception that Islamabad is not doing enough to combat terrorism in Afghanistan.
Military expert Collin Koh, from the S Rajaratnam School of International Studies at Nanyang Technological University in Singapore, said higher value military items like warships and fighter jets were the major reason for the rise in China's arms exports.