With growing global engagement, stronger economic fundamentals and sustained diplomatic activism, India’s third-rank position marks an important milestone — signalling that the country is steadily assuming a larger leadership role in shaping Asia’s future.
India has secured the third position in the 2025 Asia Power Index, released by the Lowy Institute, marking a significant rise in its regional and global influence. The United States and China continue to hold the top two spots, but analysts note that India has strengthened its rankings across multiple categories and is poised to cross the threshold that classifies a nation as a “major power.”
The annual index evaluates the strength and influence of 27 countries and territories across the Asian continent using 131 indicators across eight key dimensions: Military Capability, Defence Networks, Economic Capability, Economic Relationships, Diplomatic Influence, Cultural Influence, Resilience and Future Resources. Collectively, these metrics assess how effectively nations shape their external environments.
India’s performance improved in several categories this year, driven by steady economic growth, strategic partnerships, military modernisation and rising diplomatic outreach. Though China remains ahead, the report highlights a narrowing gap in certain capability areas.
- A notable trend in the 2025 report is the decline of net international migration to the UK — but in the Asia Power Index context, what stands out is India’s expanding role in shaping regional decision-making
- Its military exercises with Indo-Pacific partners, expanding technology collaborations and growing economic ties have boosted its regional standing
The index also acknowledges India’s resilience — its ability to absorb internal and external shocks. This year, India scored higher on Future Resources, which considers demographic potential, innovation capacity and projected economic growth.
However, the report also points out the gap between India and China, especially in economic capability. China’s larger economy and manufacturing dominance still give it an edge in several categories. Nevertheless, India’s trajectory suggests long-term convergence in certain strategic spheres.
The 2025 edition also highlights broader regional dynamics, including shifting alliances, economic recalibration and renewed competition among major powers in Asia. As the Indo-Pacific becomes a central theatre for geopolitical engagement, India’s role as a stabilising and influential force becomes increasingly vital.
Analysts believe India’s rise in the index reflects both national reforms and global realignments. As countries diversify supply chains, enhance security partnerships and seek alternatives to China-centric economic structures, India has emerged as a preferred partner.
