Why in news?
The Lowy Institute’s Asia Power Index 2025 ranks India as the third most powerful country in Asia, after the United States and China. This is the first time India has crossed the threshold of 40 points, categorising it as a “major power” in the index.
Background
The Asia Power Index evaluates countries across eight measures: economic capability, military capability, resilience, future resources, diplomatic influence, economic relationships, defence networks and cultural influence. It assigns scores out of 100 to reflect each country’s overall power.
India scored 40.0 points in 2025, an increase of 0.9 from the previous year. The improvement was driven largely by gains in economic capability and future resources, partly reflecting strong economic growth and demographic advantages. The country remains behind China (74.8) and the United States (76.6) but ahead of Japan, Russia and Australia.
Highlights of India’s performance
- Economic capability: India ranked third in economic power, benefiting from a large and growing economy. Its gross domestic product (GDP) is projected to rise steadily, bolstering its influence.
- Future resources: High scores in demographic strength and potential future military spending helped India rank third in this category.
- Diplomatic influence: India improved its diplomatic standing through engagement in forums such as the G20 and by hosting high‑level summits. However, it still ranked sixth overall.
- Defence networks: India’s weakest area was defence partnerships, where it ranked ninth due to limited formal alliances. Deepening military cooperation with other countries could enhance its score.
- Cultural influence: The index noted modest gains in cultural influence thanks to India’s vibrant media and diaspora, though the country still trails China and Japan.
Implications
- Major power status: Crossing the 40‑point threshold places India firmly in the “major power” category. It reflects the country’s increasing weight in regional politics and economics.
- Strategic challenges: While India’s resources are growing, there remains a gap between potential and actual influence. The index notes that India must strengthen its defence partnerships and diplomatic outreach to fully leverage its capabilities.
- Policy considerations: Continued economic reforms, infrastructure development and investments in education and technology will be crucial to maintain momentum and convert resources into influence.
Conclusion
The 2025 Asia Power Index underscores India’s ascent on the regional stage. To sustain and enhance its position, India must address weaknesses in defence networks and convert its demographic and economic strengths into tangible influence.
Source: News on air
