According to the Asia Power Index 2024, India has now overtaken Japan to be the third most powerful Asian nation. The September 2024 report is curated by the Australian think Lowy Institute and it suggests that the power of India is growing incessantly. The Asia Power Index compiled by the institute measured power across 8 different yet key metrics. These are military capability, economic resources, resilience, future resources, diplomatic influence, economic relationships, defense networks and also cultural influence. A total of 27 countries and territories were selected based on their ability to shape the external environment of these metrics.
Two countries, the United States (scoring 81.7 out of 100) and China (scoring 72.7 out of 100), grab the first and second positions, as per the report. India’s rise in the Asia Power Index 2024 indicated economic growth and scored an average of 39.1 out of 100, increasing its Economic Capability by 4.2 points. It also highlighted that India performed well across all other resource measures, rising by 8.2 points.
What are the key drivers behind India’s rise?
The ascent of India on the global stage has been driven by a number of potential factors. The country’s rapid economic growth, which has been bolstered by a burgeoning middle class as well as innovation in technological aspects, has been one of the key forces propelling its rise. India’s continuous investment in military moderation and defense partnerships, along with its diplomatic outreach, has helped India to attain a powerful position in the Asia Power Index.
The report says India’s performance across these metrics has shown marked enhancement. The continuous focus on the 8 metrics created ways to surpass Japan and become the third most powerful country in the Asia Power Index. Japan has historically maintained a strong presence in Asia’s power rankings, but now India’s ascension is not just significant for its domestic implications; rather, it’s proven for the broader geographical environment in Asia. For this, the United States and China remained the competing influence for India to grow rapidly.
India’s power growth in the Asia Power Index over the years
| Year | Rank | Overall Score |
| 2024 | 3 | 39.1 |
| 2023 | 4 | 36.3 |
| 2021 | 4 | 37.7 |
| 2020 | 5 | 39.7 |
| 2019 | 5 | 41.0 |
| 2018 | 5 | 41.1 |
The economic powerhouse is the backbone of India’s clout
The economic growth of India has been nothing short of an impression. As per the World GDP Ranking 2024 list, India is the fifth largest economy in the world and has registered a strong GDP growth rate. The information technology sector, manufacturing capacity as well as a demographic dividend in India are characterised by a youthful and skilled workforce. It propels the country into the global economic stage.
The GDP growth in India outpaced major economies in 2023, and it is driven by domestic consumption, foreign investments, along with government reforms aimed at facilitating business operations. The Make in India initiative has encouraged multinational corporations to invest in India. This fosters industrial growth and innovation across sectors like technology, pharmaceuticals, along renewable energy.
The growth also depends on India’s economic policies, which are aligned with global standards and enable greater trade in the country. This economic policy further aligns with the investment flows. India’s bilateral and multilateral trade agreements, including its active participation in the QUAD, comprising countries like India, the United States, Japan and Australia, have consolidated its economic standing. These initiatives are considered effective in making stronger ties with ASEAN countries.
Military modernization: the foundation of security and influence
India’s military modernization program has been an important component of its rise in the Power Index. In 2023, India was the fourth largest military spender in the world, and the country has ramped up its defense spending over the past decade. The Indian Arm Forces, with a focus on indigenization through the Atmanirbhar Bharat or Self-Reliant India, have made stronger capabilities across different domains, be it land, sea or air.
The diversification in defense with partnerships acquiring advanced military hardware from Russia, the US, Israel and France shows India’s strong and diversified partnerships. India’s induction of the Rafale fighter jets, the commissioning of the indigenous aircraft carrier INS Vikrant and missile technology advancements areas of significant importance. This includes the development of hypersonic missiles, which have added to its growing limitary prowess.
While understanding military modernization, India’s participation in international defense exercises along with leadership in the Indian Ocean Region (ROI) has bolstered its standing, being the third most powerful country overtaking Japan. The maritime assets of India, combined with its role as a net security provider in the ROI, are considerable since this enables the country to project power well beyond its immediate borders.
Diplomatic influence
India’s diplomatic outreach has been influential in solidifying its position as a major player in global geopolitics. The foreign policy of the country has been characterized by a balanced approach, where it maintains autonomy and, at the same time, fosters closer ties with the US, Russia and the European Union. Participation in global forums, including the G20, BRICS and the Shanghai Corporation Organization (SCO), has helped form international discourse on issues like climate change as well as counter-terrorism.
India has been playing a key player in the Indo-Pacific. It is seen with Act East policy that aimed at strengthening ties with Southeast Asia and the country has underscored its importance in the region. The growing influence of organizations, including the Indian Ocean Rim Association (IORA), ASEAN, along with QUAD, reflects its big role in marinating a free and open Indo-Pacific. The country’s chairmanship of the G20 in 2023 could be seen elevating its diplomatic stature since it allowed it to spearhead discussions on global economic recovery. This summit is also important to create sustainable development and digital transformation.
India’s Resilience Amidst Challenges
India’s resilience has been a factor in its rise in the Asia Power Index. Despite facing significant issues, including the economic effects of COVID-19, the country stayed resilient and showed an ability to recover. The fiscal policies, economic stimulus packages, along vaccination drives are key for the country to stabilize during dreadful situations. Also resilience to handle external threats and internal challenges due to border tensions with China contributed to this achievement.
Is Japan then weaker in the power dynamics?
In the Asia Power Index, Japan comes in the fourth position, scoring 38.9 out of 100. While India’s rise is praiseworthy, Japan’s decline in the ranking does not suggest a huge gap weakening its global influence. This country remains an economic power with an advanced technological base as well as an international collaboration with the US and the European nations. But, there are factors that should be taken into account. The stagnating economy and ageing population, along with the limited military footprint of China and India, have contributed to a lower ranking in the Power Index 2024.
What can be the implications for Asia and beyond?
India’s rise in the Asia Power Index 2024 report marks a significant moment in the shifting balance of power in Asia. As India continues to grow in economic, military, and diplomatic growth, its influence as a force in the region becomes even more vital. The dynamics between India, China and the US will now be reliable for other countries to form future growth and prosperity.
The road in the future for India would be related to capitalizing on its current momentum and, at the same time addressing domestic issues, including poverty, infrastructure deficits as well as inequality. The leadership of the country will need to maintain a balance between economic growth and development in order to ensure prolonged prosperity. This would also be required to stay competent and prove itself to stay powerful in the Power Index.
FAQ
What is the Asia Power Index, and how is it calculated?
The Asia Power Index is an annual measure of the power dynamics in the Asia-Pacific region. It ranks 27 countries based on eight key metrics: military capability, economic resources, resilience, future resources, diplomatic influence, economic relationships, defense networks, and cultural influence.
Why has India surpassed Japan to become the third most powerful Asian nation according to the Asia Power Index 2024?
India’s rise is attributed to its strong performance across all eight metrics, with significant gains in economic capability, future resources, and diplomatic influence.
What are the key drivers behind India’s rise in the Asia Power Index?
What are the key drivers behind India’s rise in the Asia Power Index?
How has India’s economic growth contributed to its rise in the Asia Power Index?
India’s economic growth has been fueled by factors such as a burgeoning middle class, technological innovation, and government reforms. It has outpaced major economies and attracted foreign investment.
What role has military modernization played in India’s rise?
India has increased its defense spending, modernized its armed forces, and acquired advanced weaponry. It has also participated in international defense exercises and strengthened its maritime presence.
How has India’s diplomatic influence contributed to its rise?
India has strengthened its relationships with major global powers, participated in international forums, and played a key role in regional diplomacy, particularly in the Indo-Pacific.
What challenges has India faced in its journey to become a major power in Asia?
India has faced challenges such as the economic effects of COVID-19, border tensions with China, and domestic issues like poverty and inequality.
How does Japan’s decline in the Asia Power Index compare to India’s rise?
While India has risen, Japan’s decline is not indicative of a significant weakening of its global influence. Factors such as a stagnating economy, an ageing population, and a limited military footprint have contributed to its lower ranking.
What are the implications of India’s rise in the Asia Power Index for the region and beyond?
India’s rise will likely reshape the balance of power in Asia and influence regional and global dynamics. It will also have implications for other countries in the region as they navigate the changing landscape.
What are the key challenges and opportunities for India in the future as it continues to grow in power?
India will need to address domestic challenges like poverty, inequality, and infrastructure deficits while capitalizing on its current momentum and maintaining its leadership in the region.
