India rises to third spot, surpasses Japan in Asia Power Index amid economic growth, young population

India has now overtaken Japan to become the third-largest power in the Asia-Pacific region, according to the latest Asia Power Index. This shift reflects India’s “increasing geopolitical stature, dynamic growth, youthful population, and expanding economy,” as the Ministry of Information and Broadcasting states. One of the key findings in the 2024 Asia Power Index is India’s steady rise in regional power rankings, as the country seeks to realize its full potential and enhance its influence. Contributing factors include a robust post-pandemic economic recovery, which resulted in a 4.2-point increase in its Economic Capability score. India's substantial population and strong GDP growth solidify its position as the world’s third-largest economy in terms of purchasing power parity (PPP). Additionally, India's Future Resources score rose by 8.2 points, indicating a potential demographic dividend, with a youthful population set to drive economic growth and labour force expansion in the coming decades. India’s non-aligned strategic stance has enabled it to navigate complex international dynamics effectively. Its sixth place ranking in diplomatic dialogues in 2023 reflects its active participation in multilateral forums.

The Ministry further noted that the 2024 Asia Power Index identifies India as a “power to reckon with in Asia” with “immense potential for future growth.” The outlook for India is optimistic; with sustained economic growth and a burgeoning workforce, the nation is well-positioned to expand its influence in the coming years. India's rising diplomatic influence and strategic autonomy make it a crucial player in the Indo-Pacific region. Launched by the Lowy Institute in 2018, the Asia Power Index is an annual assessment of power dynamics in the Asia-Pacific region. It evaluates 27 countries' capacity to shape and respond to external challenges. The 2024 edition provides one of the region's most comprehensive assessments of power distribution, with Timor-Leste included for the first time due to its growing significance in Southeast Asia. The Index focuses on material capabilities and the influence these countries exert internationally. A country’s overall power score is calculated from a weighted resource and influence-based determinants average. It is divided into 8 measures encompassing 131 individual indicators. It offers nuanced insights into how nations convert their resources into influence within the Asia-Pacific.

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