India overtook Japan to become Asia's third largest power

The ministry highlighted that this achievement is driven by India's dynamic growth, young population and growing economy, reinforcing its position as a leading power in the region. It also reflects the country's rising geopolitical stature.

“In a major shift, India has overtaken Japan to become the third-largest power in the Asia Power Index, reflecting its growing geopolitical stature,” the ministry said.

The Asia Power Index, launched in 2018 by the Lowy Institute, is an annual measure of power dynamics in the Asia-Pacific region. It evaluates 27 countries in the Asia-Pacific region, examining their ability to shape and respond to the external environment.

According to the ministry, one of the most important findings in the 2024 Asia Power Index is India's consistent lead in the regional power rankings. Gradually moving forward, India is trying to achieve its full potential and exert its influence in the region.

The main factor behind India's rise is economic growth, the ministry said, adding that the country has shown remarkable economic recovery post the pandemic, which has contributed to a 4.2 point increase in its economic potential.

“India has shown remarkable economic recovery post the pandemic, increasing its economic capacity by 4.2 basis points. India's large population and robust GDP growth reinforce its position as the world's third largest economy in PPP terms,” ​​the ministry said.

It also noted that India's future resources score improved by 8.2 points, reflecting a potential demographic dividend. Unlike its regional rivals, particularly China and Japan, India benefits from a young population that will continue to drive economic growth and labour force expansion in the decades to come.

The index also highlighted India's growing role in multilateral diplomacy and regional security. India's leadership in the Quad and participation in various regional dialogues have allowed it to exert influence in security matters without formal military alliances.

Although its economic outreach has been limited, defence deals such as the BrahMos missile deal with the Philippines point to India's growing geopolitical ambitions.

The Asia Power Index evaluates countries based on eight main parameters, divided into resource-based and influence-based determinants. These include economic potential, military potential, resilience, future resources, economic ties, defence networks, diplomatic influence and cultural influence. India's strong performance in these categories reflects its growing role as a major power in the region.