India rises to third in Asia Power Index 2025, becomes major regional player

India has secured the third position in the Asia Power Index 2025, trailing only the United States and China, according to the latest rankings released by the Australia-based think tank, Lowy Institute. With an overall score surpassing 40 points, India has crossed the threshold to be classified as a major power, reflecting its growing clout in the region.

The Asia Power Index, first launched in 2018, evaluates the relative power of 26 countries and territories in the Asia-Pacific region across eight key domains: economic resources, military capability, diplomatic influence, economic relationships, technological capability, security networks, resilience, and cultural influence. It is widely regarded as a benchmark for understanding regional power dynamics and trends over time.

The report highlights India’s strong economic performance, noting that its economic relationships with other countries have improved, marking the first rise in economic ties since the index’s inception. India also became the top destination for foreign investment in Asia after the United States, overtaking China, as global companies diversify their supply chains.

India’s military strength saw a boost in expert assessments following Operation Sindoor in May 2025, though its diplomatic influence grew only slightly, with more official talks held but defence partnerships remaining largely unchanged. Prime Minister Narendra Modi’s leadership ranking remained stable, with analysts noting that India’s strategy of multi-alignment, strategic autonomy, and focus on the Global South does not automatically translate into rapid growth in global influence.

Culturally, India’s footprint has expanded as tourism and travel connectivity improve, including the launch of a direct flight route to Brunei. The report also noted increased people-to-people interactions across Asia.

Despite India’s growth, the gap with China remains significant, with Beijing retaining dominance through technological sophistication, international leverage, and economic resilience. India, meanwhile, continues to consolidate its position ahead of Japan, which it overtook in 2024. Analysts caution that narrowing the gap with China remains a long-term challenge for India’s ambition of fostering a multipolar Asia.

The Asia Power Index remains a key tool for policymakers, investors, and analysts to gauge the evolving balance of power in the region, offering a comprehensive snapshot of military, economic, diplomatic, and cultural influence.