India has officially solidified its position as a major power in Asia, ranking third in the 2025 edition of the Asia Power Index, as released by the Lowy Institute, an Australian think tank. India has achieved a comprehensive power score exceeding 40 points, which is the threshold required for “major power” status. This places the nation behind only China and the United States in the hierarchy of regional power.
This development marks the second consecutive year that India has retained the third position, having surpassed Japan in 2024. Analysts have noted that while India’s hard power capabilities are growing, the gap between India and China remains considerable, pointing to ongoing challenges in achieving a multipolar balance in the region.
In terms of economic and military advancements, India has shown robust growth in its economic strength. The country’s GDP trajectory remains strong, complemented by rising international investment inflows. Significantly, India has now overtaken China as the second-most attractive destination for foreign investment, next to the US. This shift reflects a trend towards global supply chain diversification and increasing confidence in India as an investment hub. Consequently, India’s economic capability ranking climbed to third place, surpassing Japan for the first time, with an improvement in its economic relationship score noted for the first time since the index’s inception in 2018.
On the military front, India has made moderate gains, driven by expert assessments and operational experiences, particularly from Operation Sindoor in May 2025. Despite these advancements, India saw a drop in its ranking related to defense networks—indicative of military partnerships and alliances—falling to 11th place, trailing behind countries such as the Philippines and Thailand.
India’s influence and soft power, however, remain somewhat constrained, despite progress in hard power. The country’s diplomatic and defense ties have not yet fully capitalized on its growing resources, leading to a widening power gap score. Some modest gains in diplomatic influence have been identified, thanks to a continuity in foreign policy and expanded dialogues with various nations. Cultural influence has increased owing to a rise in tourism, people-to-people exchanges, and new flight routes, including a notable connection between India and Brunei.
The overall assessment presented in the Asia Power Index paints India as a nation on the rise but still restrained in its influence. The report highlights the broader regional trends of a declining US position, an expanding strategic advantage for China, and a resurgence of Russia in Asia.
