India becomes Third Powerful Nation in Asia - Asia Power Index 2024
India becomes Third Most Powerful Nation in Asia – Asia Power Index 2024. As a major change in Asia’s Power Index, India has outshined Japan to become the third most powerful country, reflecting its progress in the region. This accomplishment is driven by India’s strong growth, youth population and expanding economy, which is cementing India’s position as a major power in the region.
One of the key findings of the Asia Power Index 2024 is the steady rise of India’s power in the region. India is emerging and looking to realise its full potential and influence in the region.
It is pertinent before going to the Key findings of the Study, to know about the Index and its determinants.
Asia Power Index, 2024
In 2018, the Lowy Institute launched the Asia Power Index. It is an Annual Report on power dynamics in the Asia-Pacific region. The report evaluates 27 countries in the Asia-Pacific region, examining their ability to adapt to the external environment.
The 2024 edition includes one of the best assessments to date of regional power distribution. Timor-Leste (officially the Democratic Republic of Timor-Leste) is included for the first time, reflecting its growing importance in Southeast Asia. The Index takes into account a state’s material resources as well as its impact on global affairs.
The Asia Power Index classifies power into determinants based on resources and influence.
- Resource-based Determinants:
Economic Power: A country’s economic power is measured through indicators such as purchasing power parity (PPP), GDP, technological sophistication, and international business linkages.
Military Capabilities: Assess military capabilities based on signature capabilities such as defense expenditures, troops, weapons, and long-term energy use.
Resilience: Domestic ability to resist threats to national security, including institutional robustness, geopolitical stability, and resource security.
Future Resources: Estimates the future resources, including fiscal, military, and demographic factors forecasts for 2035.
- Influence-Based Determinants:
Business relations: Ability to influence through trade, investment, and economic diplomacy.
Defense Network: Strength of cooperation and coordination as measured by military cooperation and arms transfers.
Diplomatic Influence: A country’s leadership, participation in multilateral forums, and foreign policy ambition.
Cultural Influence: Ability to create global perspectives through cultural exports, media, and community ties.
A country’s total power score is derived from the weighted average of these eight indicators, comprising 131 indicators. The findings provide a nuanced perspective on how nations leverage their resources to exert influence in the Asia-Pacific region.
India becomes Third Most Powerful Nation in Asia – Key Factors
- Economic growth: India’s economy has rebounded from the pandemic, with its Economic Capacity increasing by 4.2 points. India’s large population and strong GDP growth have made it the world’s third-largest economy in terms of purchasing power parity.
- Future potential: India’s future potential increased by 8.2 points, indicating that there is potential for population fragmentation. Unlike regional rivals, particularly China and Japan, India benefits from a young population that will continue to support economic growth and workforce expansion in the coming years.
- Diplomatic influence: President Modi’s administration is increasingly gaining international recognition. India’s strategic neutrality allows New Delhi to effectively navigate international waters. India is ranked sixth in 2023 in terms of diplomatic dialogues, reflecting its participation in various forums.
Source: Asia Power Index, Lowy Institute
India’s large population and economic potential also make it quite promising. India’s global diaspora and cultural exports have supported its excellent ranking in Cultural Influence.
India’s role in integrating social and security cooperation is also an important perspective. India’s participation and leadership in the Quad Dialogue make it a key player in regional security dynamics, even outside of military cooperation. India’s economic outreach, though limited, is slowly improving, especially in defense sales, like the BrahMos missile deal with the Philippines. These developments, albeit small, are an indication that India is beginning to exert its geopolitical power over its neighbours.
India’s role in Asia
The Asia Power Index 2024 shows that India is a force to be reckoned with in Asia. The country’s rich resources enable future growth. India’s outlook is good. With its economy continuing to grow and its workforce growing rapidly, India is well-placed to expand its influence in the coming years. India’s growing influence and dominance, in particular, have made it a major player in the Indo-Pacific region.
Except for Russia and North Korea, India has the largest “Power Gap” in the region – the difference between its projected influences in Asia based on its resources. This is partly due to New Delhi’s foreign and security policy having a more global orientation. It also implies that India has a great deal of untapped potential to expand its influence throughout Asia, particularly outside of its own Indian Ocean neighbourhood.
Conclusion/ My Perception
India is showing its presence in almost all the fields. The Asia Power Index, 2024 is showing the same. Out of eight (8) parameters, India has performed excellent in four (4) parameters, marginally low in one parameter (see graph) and poor in three (3) important parameters. These shows, India has still long way to go to improve in more sectors/ parameters.
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