India’s influence in Asia has been rising consistently, and by 2025 it crossed the Asia Power Index benchmark for being recognized as a major power.
Australia’s think tank, the Lowy Institute, said on Friday that India has become a “major power” in the Asia Power Index 2025, based on its performance in Operation Sindoor, economic growth, and military strength.
The top five countries in terms of overall power in 2025 are the United States, China, India, Japan, and Russia. This year, Australia has dropped one place to sixth in the rankings. While the United States remains Asia’s most powerful country, its power has fallen to its lowest level since the index began in 2018.
India’s power in Asia has been steadily growing, and in 2025, it crossed the threshold defined by the Asia Power Index for major power status.
India increased its small lead over Japan by 0.9 points in 2025. It is ranked third with 40 points, behind the US (80.4) and China (73.5).
Notably, if India crosses the 40 mark, it will be on the verge of becoming a military superpower.
The think tank said that India has increased both its economic and military capabilities. “Its economy has continued to grow strongly and has made small gains in terms of its geopolitical relevance—defined in terms of international leverage, connectivity, and technology.
India’s military capabilities have also continued to improve,” it said.
Operation Sindoor was carried out in May 2025, when India attacked nine terrorist bases in Pakistan and Pakistan-occupied Kashmir.
Following missile attacks on a specific air base, the Pakistani Director General of Police (DGMO) contacted India and requested a ceasefire. It stated, “These gains were largely due to improved expert assessments of India’s capabilities, influenced by India’s performance in Operation Sindoor, launched in May 2025, and enhanced by India’s recent combat experience.”
Notably, India’s Economic Relations ranking has risen for the first time since the index began in 2018.
Although its trade ties with Asia remain weak, India has surpassed China to become the second-largest destination for inward investment after the United States, based on aggregate flows over a decade. According to the assessment, this shift was driven by global supply chain diversification and India’s growing attractiveness as an investment hub.
India also recorded a slight improvement in diplomatic influence. The assessment attributed this to more frequent bilateral dialogue and expert opinion, suggesting an improvement in the quality of India’s diplomatic service.
India’s cultural influence received a further boost, with increased people-to-people movement, tourism growth, and improved air connectivity strengthening the country’s presence across Asia.
However, the think tank said India’s huge structural gap with China has widened. China continues to reduce America’s military capabilities, has faced Washington’s coercive economic policies, and has benefited from uncertainty about the Trump administration’s approach to Asia, and its diplomatic influence has reached an all-time high for any Asia Power Index country.
Australia declined slightly as it struggled to compete with others’ economic and military resources. Russia, benefiting from the support of authoritarian partners China and North Korea, regained fifth place in the overall ranking.
The United States is losing ground in Asia, achieving its lowest score ever in the 2025 Asia Power Index. China is gaining ground, narrowing its gap with the United States to its lowest level since 2020.
China is well-positioned to counter America’s coercive economic policies. Amid uncertainty about the US’s approach to Asia, it is successfully establishing itself as a reliable partner.
Moscow’s power in Asia is on the rise, and “Fortress Russia” has proven capable of withstanding the costs of war and sanctions. In 2025, Russia’s power in Asia was boosted by growing economic and defense partnerships with authoritarian partners North Korea and China.
Japan’s power in Asia remains stable, although results are negative for all resource measures except military capability, where it recorded modest growth. Leadership changes in Tokyo have diminished its importance as a foreign policy leader in the Indo-Pacific.
Southeast Asian countries recorded mostly small improvements in their total electricity generation in 2025, but the picture was mixed.
ASEAN 2025 Chair Malaysia is gaining regional influence, but other countries, especially Thailand, remain preoccupied with domestic affairs. Indonesian President Prabowo Subianto’s diplomacy focused more on the global than the regional level.
Australia faces a long-term challenge in maintaining its power in Asia. It slipped below Russia in the 2025 Asia Power Index rankings. According to the assessment, its economic and military resources have declined compared to other countries, meaning it will have to work harder to maintain its regional influence.
The seventh edition of the annual assessment, authored by Susanna Patton and Jack Sato, evaluates the power of 27 countries and territories in Asia based on 131 indicators across eight thematic approaches, including military capability and defense networks, economic capability and relationships, and diplomatic and cultural influence, as well as resilience and future resources.
The annual Asia Power Index surveys countries in the West, such as Pakistan; the North; and the Pacific Ocean, such as Australia, New Zealand, and the United States.
