India Overtakes Japan to Become the 3rd Most Powerful Nation in the Asia Power Index

India Overtakes Japan: India has officially overtaken Japan to emerge as the third most powerful nation in the Asia Power Index 2024, a significant shift in the Asian geopolitical landscape. The Lowy Institute recently presented the Asia Power Index 2024, where India climbed the ranks. This development reflects India’s growing influence and capabilities, positioning it as a major player in Asia, second only to the United States and China.

Key Highlights of India’s Rise

• Economic Growth: India’s post-pandemic recovery has been robust, with significant progress in economic growth. India has leapfrogged 4.2 points in the Economic Capability ranking, becoming the world’s third-largest economy by purchasing power parity (PPP). This growth indicates that India is back on track and still has vast potential for future expansion.
• Demographic Advantage: A key factor in India’s rise is its demographic advantage—its youthful population. India’s Future Resources score improved by 8.2 points, signaling a growing labor force that will support sustainable economic growth in the coming decades. This stands in stark contrast to aging regional powers like Japan and China.
• Diplomatic Influence: India’s diplomatic influence has been on the rise, with the country ranking sixth in diplomatic dialogues conducted in 2023. India’s active participation in multilateral forums and strategic partnerships, particularly through initiatives like the Quad, underscores its growing role in regional security.
• Military Capability: Although India has been upgrading its military capabilities, it is still perceived as lacking the ability to project power over a broader geographic area. However, in recent years, India has entered into several defense deals and collaborative agreements with other countries, demonstrating its commitment to strengthening its defense network.

Comparison with Japan

India’s rise coincides with a downturn in Japan’s influence as a regional power. According to the 2024 Asia Power Index scorecard, Japan has fallen to fourth place, with a score of 38.9, reflecting declines in several key areas:

• Economic Capability and Demographic Challenges: Japan’s Economic Capability score has suffered due to losses in international leverage and technological advancements, as well as demographic challenges. Its score for Economic Relationships has also declined over the past few years, pushing it further behind in terms of trade and investment relationships.
• Shift in Defense Stance: Japan has been gradually shifting from being purely an economic giant to playing a more significant role in security matters. However, this shift may not be enough to counter the structural pressures of an aging population and declining productivity.

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Regional Implications

India’s rise to third place in the Asia Power Index marks a significant shift in regional dynamics. With economic, political, and diplomatic growth, India is poised to take on more substantial leadership roles in determining the future of Asia. Analysts believe that although India has made great strides in global influence, there is still room for further development, particularly in utilizing its resources more effectively.

As a strategically non-aligned player, India is in a strong position to navigate complex global scenarios. Its influence is expected to increasingly impact regional security architectures and economic partnerships, especially in the context of the Indo-Pacific.

Conclusion

India’s ascent to third place in the Asia Power Index reflects not only its current capabilities but also its potential for future growth. As India continues to strengthen its economy and expand its diplomatic engagements, it is on track to remain a major power in Asia for years to come.