India crosses ‘major power’ threshold in Asia Power Index 2025

India has officially entered the ranks of Asia’s major powers, according to the 2025 edition of the Asia Power Index released by Australian think tank Lowy Institute.

With a comprehensive power score exceeding 40 points—the threshold for ‘major power’ status—India now firmly holds third place in the power hierarchy, behind only China and the US.

This marks the second consecutive year India has been ranked third, after overtaking Japan in 2024. However, analysts note that even as India’s gains are steady, the gap with China continues to widen, underscoring the challenges ahead in realising New Delhi’s long-term vision of a multipolar world order.

India recorded clear improvements in both economic and military capabilities this year. The Index noted strong GDP growth, rising international investment inflows, and an improved perception of India’s geopolitical relevance, including connectivity and technology.

India’s economic capability ranking rose to third place, ahead of Japan, while its score for economic relationships improved for the first time since the Index was launched in 2018.

A key driver was foreign investment, with India overtaking China as the top destination for inward investment after the US, reflecting global efforts to diversify supply chains and India’s growing appeal as an investment hub.

On the defence front, India’s military capability improved modestly, bolstered by favourable expert assessments and the success of Operation Sindoor, conducted in May 2025, which added to India’s operational experience. However, India’s defence networks—a measure of military partnerships and alliances—showed a decline, with its ranking dropping to 11^th place, behind the Philippines and Thailand.

Despite advances in hard power, India continues to underperform in influence, as reflected in its expanding Power Gap score—the divergence between its resource potential and actual influence in the region. Diplomatic relationships and defence ties have not kept pace with India’s growing resources.

While the country recorded minor gains in diplomatic influence, benefitting from continuity in foreign policy and expanding dialogues, it did not improve its standing in regional or global leadership under Prime Minister Narendra Modi. Analysts say India’s emphasis on strategic autonomy, multi-alignment, and Global South diplomacy has yet to translate into greater strategic leverage in Asia.

India’s cultural influence rose this year, driven by an increase in people-to-people exchanges and a boost in tourism and travel connectivity. New direct flights—including a notable route between India and Brunei—has strengthened India’s regional engagement.

Overall, the 2025 Asia Power Index presents India as a rising yet restrained power—one whose capabilities are expanding but whose influence still falls short of its potential.

The Index ranks 27 countries and territories across Asia, measuring both resources and influence to map the balance of power in the region. It highlights seven major trends this year, including a weakening US position, China’s growing strategic advantage, and Russia’s resurgence in Asia.