The latest Asia Power Report from Australia’s Lowy Institute reveals significant shifts in the power dynamics of Asia, with India emerging as a key player. The report, which assesses national power based on economic relationships, military capabilities, cultural influence, and political resilience, shows India overtaking Japan to become the third most powerful country in Asia.
India’s rise is marked by a score increase from 36.4 in 2023 to 39.1 in 2024, placing it behind the United States (81.7) and China (72.7) but ahead of regional powers such as Australia, Russia, and South Korea. This advancement is primarily attributed to India’s robust economic 8.2 percent growth.
The country’s youthful population is seen as a significant asset, contributing to an 8.2-point increase in future resources. India’s diplomatic influence has also grown, with Prime Minister Narendra Modi‘s enhanced global leadership and the successful hosting of the G20 Summit in 2023 showcasing the country’s increasing strategic ambition and international engagement.
However, the report highlights a challenge for India: a widening negative power gap. This gap, which increased from -2.8 to -3.9 points over the past year, represents the disparity between India’s available resources and its real-world influence. A factor contributing to this gap is India’s relatively weak economic integration with other Asian nations, in the opinion of the judges (Gunjan’s note – it seems that they have not given adequate attention to India-Japan collobation and the rise of relations with Taiwan, South Korea and Australia
The report underscores that despite India’s impressive economic growth and increasing diplomatic clout, there is still significant room for improvement in leveraging its potential fully. To solidify its position as a leading power in Asia, “India needs to focus on strengthening its economic ties within the region and developing more robust defense collaborations.”
The Asia Power Index paints a picture of India as a rising power with substantial potential, but also highlights the challenges it faces in fully realizing its influence on the Asian stage. As India continues to grow economically and diplomatically, addressing these gaps in economic integration and defense partnerships will be crucial for its aspirations to become a dominant force in the region.
