India has overtaken Japan to become the third most powerful nation in Asia, as per the 2024 edition of Asia Power Index (API). According to it, India now stands third on the index after the US and China.

Launched by Australia’s Lowy Institute in 2018, the Asia Power Index is an annual measure of power dynamics in the Asia-Pacific region. It evaluates 27 countries across the Asia-Pacific, on eight parameters including military capability, defence networks, economic capability and relationships, diplomatic and cultural influence, resilience, and future resources.

In a press release issued here by the Ministry of Information & Broadcasting, the current edition of the report offers one of the most comprehensive assessments of power distribution in the region to date. Timor-Leste has been included for the first time, reflecting its growing importance in Southeast Asia.

Stating that even though India’s “clout remains below the potential promised by its resources,” it claimed that it has overtaken Japan to become the third-ranked power in Asia. “However, the gap between the expectation of “India rising” and reality remains pronounced. The API shows that New Delhi still has limited ability to project power and influence east of the Malacca Strait. But the fact that its influence remains well below the level promised by its resources suggests it still has ample potential for further growth as a major power,” it read further.

Attributing the success of India on its resources, the report claimed that the country’s strength lies in its huge population, landmass, and economy.

Observing that India’s youthful population may well deliver a demographic dividend in the years ahead, as compared to the rapidly ageing and contracting workforces in many other countries in Asia, including rival China, the report stated that post-Covid economic growth saw India increase its Economic Capability by 4.2 points. It also grew well in all other resource measures, especially Future Resources, where its score increased by 8.2 points.

It was also mentioned that even though the country’s Diplomatic Influence saw a rise in the 2024 API, a large gap still remains between the narrative of “India rising” and the reality of its limited power projection in Asia.

Economic relationships remain India’s weak point, and it again lost a ranking in its score, being overtaken by Indonesia. India’s low-level economic integration with the larger economies in Asia and weak participation in regional economic architecture means this trend is set to continue, the report further stated.

Besides, India’s score for Defence Networks also went down for the third year in a row, reducing it to the 9th position. The report claimed that India’s non-aligned stance and caution about deepening security cooperation with the US alliance network means it will likely continue to lose relative ground in this measure, even as it launches flagship initiatives such as the sale of BrahMos missiles to the Philippines.