Asia Power Index

Why in News?

India has overtaken Japan to become the third most powerful country in Asia.

What is Asia Power Index (API)?

Power is the capacity of a state or territory to direct or influence the behaviour of other states, non-state actors, and the course of international events.

• API – The Index seeks to measure the ability of countries to shape and respond to their external environment and evaluates the power dynamics of countries across Asia.
• Compiled by - Lowy Institute, Australian think tank.
• Index Components - It measures the comprehensive power of 27 countries using a weighted average across eight thematic measures.

What are the driving factors of India?

• India’s rise to the third position reflects its expanding capabilities in several key areas, including defence, diplomacy, and economic growth.
• Economic Growth - India is one of the world’s fastest-growing major economies, driven by youthful workforce 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.
• Diplomatic influence – India’s 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.
• 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.

What is India’s potential to become Superpower?

• India’s rise in the Asia Power Index highlights it’s potential to emerge as a global superpower in the coming decades.
• Demographic dividend - By 2030, India is projected to have the world’s largest working-age population that will serve as a key engine for global development.
• Strategic position in global politics – India’s 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 development - India’s emphasis on economic self-reliance, combined with ongoing reforms in infrastructure, manufacturing, and technology would enhancing its global standing.
• Leadership in climate change – India’s efforts in climate change mitigation is positioning India as a leader among emerging economies in setting environmental standards and contributing to global climate goals.

What are the challenges for India becoming Super Power?

• 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.
• Infrastructure deficiency - India will need to invest $840 billion over the next 15 years to meet the needs of its fast-growing economy.
• Geopolitical tensions - India’s complex neighbourhood, with ongoing tensions along its borders with China and Pakistan, poses a challenge to its regional stability.
• Internal disturbances – India’s internal security issues like naxalism, insurgency affects India’s position as global military power.
• UN Security Council - Permanent membership to UN security council is an important element of super power status and China will be a big challenge in attaining it.

What lies ahead?

• While challenges remain, the country’s potential to shape the future of Asia and beyond is stronger than ever.
• To fully realise its potential, India must continue investing in its physical infrastructure, including transportation, healthcare, and education.   
• Strengthen the neighbourhood relationships though regional organization and prevent the influence of China in the region.
• Utilize the vast diaspora of India across the globe to strengthen it soft power and diplomatic prowess.

References

1. Business Standard | Asia Power Index
2. LoweyInstitue | API India