India Overtakes Japan to Become Third-Largest Power in Asia Power Index, Records 4.2-Point Increase in Economic Capability

India has officially surpassed Japan to become the third-largest power in the Asia Power Index, as announced by the Ministry of Information and Broadcasting on Wednesday. This achievement reflects India’s dynamic growth, youthful population, and expanding economy, solidifying its position as a key player in the region and enhancing its geopolitical stature.

According to the ministry, the Asia Power Index, launched by the Lowy Institute in 2018, assesses power dynamics across 27 countries in the Asia-Pacific region. The index measures the capacity of these nations to influence and respond to external challenges. The 2024 index notably highlights India’s consistent rise in regional power rankings, indicating the country’s ambitions to reach its full potential and amplify its influence.

A significant driver of India’s ascent is its remarkable economic recovery following the pandemic, contributing to a 4.2-point increase in its Economic Capability score. The ministry noted, “India has demonstrated impressive post-pandemic economic recovery, reinforcing its status as the world’s third-largest economy in purchasing power parity (PPP) terms.” Additionally, India’s Future Resources score rose by 8.2 points, indicating the potential benefits of its youthful demographic.

The index also emphasizes India’s expanding role in multilateral diplomacy and regional security. Through its leadership in the Quad and involvement in various regional discussions, India has been able to influence security matters without formal military alliances. While India’s economic outreach remains somewhat limited, initiatives like the BrahMos missile deal with the Philippines signify its growing geopolitical ambitions.

The Asia Power Index evaluates countries based on eight core measures, categorized into resource-based and influence-based determinants. These measures include Economic Capability, Military Capability, Resilience, Future Resources, Economic Relationships, Defense Networks, Diplomatic Influence, and Cultural Influence. India’s strong performance across these categories underscores its emergence as a major power in the region.