India now 'major power' in Asia Power Index 2025, behind only US and China

According to 2025 Asia Power Index, India moved up in the ranking for economic ties with other countries - a first since 2018

India secured third position in the Asia Power Index 2025, behind only the US and China, according to the index released by Australia-based think tank Lowy Institute. The 2025 edition shows India’s overall power score crossing 40 points, the threshold for classification as a ‘major power’.

 

The report noted that India’s economy is performing well and growing strongly. India has also become slightly more important in global politics, the report said, adding that its military strength has improved partly because experts rated India’s capability higher after Operation Sindoor in May 2025.

Economic ties show improvement

India’s diplomatic ties and defence partnerships did not improve, but its economic relationships did. For the first time since the index began in 2018, India moved up in the ranking for economic ties with other countries.

 

India’s diplomatic influence grew only slightly as the country held more official talks with other governments. Experts believe the diplomatic service is gradually improving.

PM Modi’s leadership ranking unchanged

The report said that Prime Minister Narendra Modi’s leadership ranking did not improve this year. It suggested that India’s strategy of multi-alignment, strategic autonomy and focus on the Global South does not automatically translate into rapid growth in global influence.

 

The country’s weak trade links with other Asian nations also did not improve, the report added.

India overtakes China in foreign investment flows

India maintained its position as the third most powerful country in Asia, staying ahead of Japan, which it overtook in 2024. However, the power gap between India and China has widened further, posing a long-term challenge for India’s goal of fostering a multipolar world. China’s score of 73.7 remains substantially higher than India’s.

 

Even as India continues to grow, China remains Asia’s economic heavyweight. Beijing’s key strengths include high technological sophistication, strong international leverage and extensive connectivity. China also has the ability to withstand US economic coercion due to its diversified export markets, the report noted.

 

However, India became the top destination for foreign investment after the United States, overtaking China. This shift comes as companies diversify supply chains and view India as increasingly attractive for investment.

Cultural influence on the rise

India’s cultural influence has also grown. More people are travelling between India and other Asian countries, and India has become a more popular tourism destination. Travel connectivity has improved as well, including a new direct route between India and Brunei launched in 2025.