India crosses ‘major power’ threshold in Asia Power Index

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 the 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, while India’s gains are steady, analysts note that 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’s economic and military capabilities showed clear improvement 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 ranking for economic capability rose to third place, surpassing Japan, while its score for economic relationships improved for the first time since the index’s inception in 2018.

Foreign investment was a key driver, 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, as per the key findings of the think tank, India’s defence networks — a measure of military partnerships and alliances — weakened, with its ranking dropping to 11th 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, benefiting from continuity in foreign policy and expanding dialogues, it did not improve its standing in terms of regional or global leadership under Prime Minister Narendra Modi. Analysts suggest that India’s emphasis on strategic autonomy, multi-alignment and Global South diplomacy is 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. The launch of new direct flights, including a notable route between India and Brunei, has strengthened India’s regional engagement.

Overall, the Asia Power Index paints a picture of a rising yet restrained India — a nation whose capabilities are expanding, but whose influence still falls short of its potential.

The index, which ranks 27 countries and territories across Asia, measures 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.