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India has officially overtaken Japan to become the third most powerful country in Asia, according to the latest Asia Power Index released by the Lowy Institute. This shift in rankings marks India’s increasing influence across the continent, solidifying its position as a major global player with ambitions of becoming a superpower.
What the Asia Power Index measures
The Asia Power Index, compiled annually by the Australian think tank Lowy Institute, evaluates the power dynamics of countries across Asia. The index is based on a comprehensive set of metrics, including economic resources, military capability, diplomatic influence, cultural reach, and future resources. India’s rise to the third position reflects its expanding capabilities in several key areas, including defence, diplomacy, and economic growth.
Key drivers behind India’s rise
India’s ascent in the Asia Power Index can be attributed to several crucial factors, each contributing to its growing regional and global clout:
Economic growth: India is one of the world’s fastest-growing major economies, with consistent improvements in its technology, manufacturing, and services sectors. The country’s youthful, dynamic workforce is a driving force behind this expansion, positioning India as a hub for innovation and investment. Programmes like “Make in India” and the push towards “Atmanirbhar Bharat” have enhanced its industrial and economic base.
Military modernisation: India's significant investment in modernising its military has elevated its strategic importance. Advanced missile systems, nuclear capabilities, and an expanding naval presence, particularly in the Indian Ocean, have made India a central figure in regional security. The country’s growing defence budget further underscores its rising military stature.
Diplomatic influence: India’s active role in international diplomacy has expanded its global footprint. Participation in multilateral organisations such as the United Nations, G20, Brics, and Quad has amplified its influence. India’s strategic partnerships with the United States, Australia, Japan, and the European Union are also enhancing its presence in global affairs.
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Technological and scientific advancements: India's progress in space exploration, renewable energy, and information technology has cemented its position as a leader in emerging sectors. Initiatives like Digital India, a booming start-up ecosystem, and advances in renewable energy capacity have enhanced India’s standing as a technological powerhouse.
Cultural soft power: India’s rich cultural heritage, including Bollywood, yoga, and a vast diaspora, has contributed to its rising soft power globally. These cultural exports have broadened India's influence beyond Asia, making it a prominent player on the world stage.
Japan’s decline in regional power
While Japan continues to be a formidable economic and technological force, its decline in the Asia Power Index reflects broader challenges. Japan’s slow population growth, limited military expansion, and relatively stagnant economic performance have caused it to lose ground to rising giants like China and India. Japan’s reserved geopolitical stance, particularly in military matters, has further contributed to its slipping influence compared to India’s assertive foreign policy and defence strategies.
India’s path to global superpower status
India’s rise in the Asia Power Index is more than a symbolic shift; it highlights the nation’s potential to emerge as a global superpower in the coming decades. Several factors strengthen this argument:
Demographic dividend: By 2030, India is projected to have the world’s largest working-age population, which presents a tremendous opportunity for economic growth and innovation. This young workforce could serve as a key engine for global development.
Strategic position in global politics: As a democratic nation with a vital position in the Indo-Pacific region, India is central to the global geopolitical landscape. Its role in regional security alliances, such as Quad, and its expanding partnerships with key global players underline its importance in maintaining stability in the Indo-Pacific.
Economic reforms and infrastructure development: India’s emphasis on economic self-reliance, combined with ongoing reforms in infrastructure, manufacturing, and technology, has the potential to attract significant foreign investment. These initiatives could propel India into the ranks of the world’s largest economies, further enhancing its global standing.
Leadership in climate change and sustainability: India is making substantial strides in climate change mitigation, with ambitious goals to boost renewable energy and reduce carbon emissions. These efforts are positioning India as a leader among emerging economies in setting environmental standards and contributing to global climate goals.
Challenges on India’s road to superpower status
Despite its impressive rise, India faces several significant challenges that could impact its global ambitions:
Income disparities: While the economy continues to grow, significant income inequality persists, particularly in rural areas. Addressing this divide will be critical for India’s long-term growth and stability.
Infrastructure needs: To fully realise its potential, India must continue investing in its physical infrastructure, including transportation, healthcare, and education. These sectors remain vital to harnessing the country’s demographic advantages.
Geopolitical tensions: India’s complex neighbourhood, with ongoing tensions along its borders with China and Pakistan, poses a challenge to its regional stability. Navigating these delicate relationships will be essential for maintaining its rise as a regional and global power.
India’s rise to third place in the Asia Power Index reflects its growing influence and capabilities in the region. With rapid economic growth, an expanding military presence, and a more assertive diplomatic approach, India is well on its way to becoming a major global power. While challenges remain, the country’s potential to shape the future of Asia and beyond is stronger than ever. The world will be closely watching as India continues to assert itself both regionally and globally.
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