India has cemented its position as one of the top powers in Asia, overtaking Japan to secure the third place in the prestigious 2024 Asia Power Index published by the Lowy Institute. This accomplishment marks a major milestone in India's steady rise as a significant regional player, propelled by its booming economy, strategic diplomacy, and a young, dynamic workforce.
While the United States and China continue to dominate the Asian power hierarchy, India’s emergence as a powerful force is undeniable. The rankings highlight India’s increasing regional influence and the growing tangible impact of New Delhi’s policies on the broader Asian landscape.
India’s Economic Surge
Central to India's ascension in the Asia Power Index is its economic resurgence. According to the Lowy Institute, India’s Economic Capability score saw a notable increase of 4.2 points in 2024, reflecting a robust recovery post-pandemic and a strong economic trajectory. As the world's third-largest economy in terms of purchasing power parity (PPP), India is using its economic strength to not only solidify its domestic stability but also project power globally.
India’s demographic advantage has further bolstered its standing. With a youthful population and an expanding workforce, India’s Future Resources score soared by 8.2 points, the highest among major Asian economies. This surge signals India’s potential for sustained growth over the coming decades, positioning it for strategic advantages in comparison to other Asian giants like China, which faces challenges due to its aging population.
Challenges in Economic Relationships
Despite these gains, India faces hurdles in its economic relationships. It ranks behind Indonesia in terms of Economic Relationships due to limited integration into key regional economic frameworks. India’s cautious stance on free trade agreements (FTAs) and its absence from influential trade pacts such as the Regional Comprehensive Economic Partnership (RCEP) are limiting factors that prevent India from fully capitalizing on its economic potential.
Diplomatic Influence: India’s Rising Global Footprint
India’s diplomatic efforts have been another key driver of its rise. The Diplomatic Influence ranking in the Asia Power Index reveals a significant improvement, with India now positioned as the fourth most influential country in Asia, behind only China, Japan, and the United States. Prime Minister Narendra Modi’s proactive foreign policy has played a vital role in boosting India’s global standing through increased engagement with both Asian and global partners.
India’s active participation in diplomatic dialogues, with the country hosting the sixth-highest number of such discussions in 2023, showcases its growing role in shaping the regional and global political order. By maintaining a non-aligned approach, India navigates a complex geopolitical landscape, ensuring strategic autonomy while engaging with multiple global power centers.
Military Power and Defense Networks
While India’s military capabilities continue to strengthen, its defense networks remain a challenging area. Despite a powerful military force, India ranks ninth in Defense Networks, overtaken by countries like Indonesia. India’s reluctance to join formal security alliances like AUKUS limits its ability to expand defense partnerships beyond bilateral agreements, such as the sale of BrahMos missiles to the Philippines.
Despite these constraints, India’s Military Capability score places it fourth in Asia, behind only the U.S., China, and Russia. With growing defense spending, India’s military remains formidable, particularly in the Indian Ocean Region. However, its inability to project power beyond this region highlights an existing gap between its military resources and its global influence.
India’s Potential in a Multipolar Asia
India’s regional rise has significant implications for the future balance of power in Asia. As China’s influence plateaus and U.S. dominance continues, India is emerging as a key player in a multipolar Asia. This shift offers smaller countries in the region an alternative partnership to the U.S. and China, reducing their dependence on the traditional power blocs.
India’s strategic autonomy enhances its role as a bridge between competing interests in Asia. With leadership in initiatives like the Quad and the India-Middle East-Europe Economic Corridor, India is positioning itself as a shaper of regional economic and security frameworks.
Moving Forward: Addressing Economic Gaps
To fully realize its potential as a dominant Asian power, India must address the economic underperformance in certain areas. Greater integration into regional trade networks, more active participation in global free trade agreements, and enhanced defense diplomacy are key steps in closing the “power gap” identified by the Lowy Institute.
As India strengthens its global relationships and enhances its defense posture, it will undoubtedly continue its rise to regional dominance, shaping the future of Asia and beyond.
Conclusion
India’s rise to third place in the Asia Power Index 2024 reflects the country’s growing influence in global geopolitics. With a booming economy, strong diplomatic efforts, and a youthful demographic, India is poised for sustained leadership in Asia. As the world’s third-largest economy and a growing military power, India’s role in the region is undeniable. However, its journey to becoming a fully realized global power will require addressing economic gaps and strengthening its defense networks to secure a more dominant position on the world stage.
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