India Rises to Third Place as Major Power in Asia's 2025 Power Index

India has been recognized as one of Asia's leading powers, achieving third place in the 2025 Asia Power Index, a report published by the Lowy Institute in Australia. This achievement marks India as a "major power," with its comprehensive power score surpassing 40 points. Only China and the United States rank higher in the region's power structure.

This year marks India's second consecutive hold on the third position, having surpassed Japan in 2024. Analysts note that although India is increasing its hard power capabilities, a considerable gap still exists between India and China, indicating ongoing challenges in establishing a balanced multipolar regional environment.

Economic and Military Gains
India's economy has demonstrated significant growth, characterized by a strong GDP path and increased international investment. The nation has surpassed China as the second-most favored destination for foreign investment, trailing only the United States. This shift is attributed to global supply chain diversification and India's rising attractiveness as an investment destination. India's economic capability ranking has climbed to third place, overtaking Japan, while its economic relationship score improved for the first time since the index's introduction in 2018.

In military terms, India's capabilities have seen moderate improvements, supported by expert evaluations and experience gained during Operation Sindoor in May 2025. However, India's ranking in defense networks, which measures military partnerships and alliances, has fallen to 11th place, behind nations such as the Philippines and Thailand.

Influence and Soft Power
Despite advancements in hard power, India's influence on regional and global scales remains limited. The country has yet to fully leverage its growing resources through diplomatic and defense relations, resulting in an expanding power gap score. There have been modest improvements in diplomatic influence, aided by consistent foreign policy and expanded diplomatic dialogues. India's cultural influence has increased due to a rise in tourism, people-to-people exchanges, and new flight routes, including a significant connection with Brunei.

Overall Assessment
The Asia Power Index portrays India as a burgeoning yet restrained power: a country expanding its capabilities but striving to convert these into enhanced regional and global influence. The 2025 report also highlights broader regional dynamics, such as the declining position of the US, China's expanding strategic advantage, and Russia's renewed presence in Asia.