India Surpasses Japan to Become the Third-Largest Power in Asia

India has officially overtaken Japan to become the third-largest power on the continent, according to the latest Asia Power Index. This development highlights India’s growing geopolitical importance and robust economic growth.

Key Factors Behind India’s Rise

Economic Growth

India has demonstrated a strong economic recovery post-pandemic, leading to a notable 4.2-point increase in its Economic Capability score. With a large population and impressive GDP growth, India is now recognized as the world's third-largest economy in purchasing power parity (PPP).

Future Potential

India’s Future Resources score has risen by 8.2 points, indicating a potential demographic advantage. Unlike its regional competitors, particularly China and Japan, India benefits from a youthful population, which will contribute to economic growth and an expanding workforce in the coming decades.

Diplomatic Influence

India's non-aligned strategic approach has enabled it to effectively navigate complex international relations. In 2023, India ranked sixth in diplomatic dialogues, showcasing its active participation in multilateral forums.

Cultural Influence

India's large population and economic strength support its cultural influence. The country maintains a strong cultural presence globally, aided by its diaspora and cultural exports.

Multilateral Diplomacy

India plays a significant role in multilateral diplomacy and security cooperation. Its active participation in dialogues and leadership in the Quad has bolstered its role in regional security, even outside formal military alliances.

Economic Outreach

While still limited, India's economic outreach is gradually improving, particularly in defense sales, such as the BrahMos missile deal with the Philippines. These developments indicate that India is starting to extend its geopolitical influence beyond its immediate neighborhood.

India’s Role in Asia

The Ministry of Information and Broadcasting noted that the 2024 Asia Power Index presents India as a “power to reckon with in Asia,” with vast potential for future growth. The outlook for India appears optimistic, with ongoing economic development and a growing workforce positioning it to expand its influence in the coming years.

About the Asia Power Index

The Asia Power Index, launched by the Lowy Institute in 2018, annually measures power dynamics in the Asia-Pacific region. It evaluates 27 countries based on their ability to shape and respond to the external environment. The 2024 edition provides a comprehensive assessment of power distribution in the region, including Timor-Leste for the first time.

Also read: 10 Years of Make in India: A Decade of Growth and Innovation

The Index focuses on material capabilities and international influence, deriving overall power scores from a weighted average of various indicators across eight measures. This offers valuable insights into how countries leverage their resources to exert influence in the Asia-Pacific region.