According to the Asia Power Index 2024, India has become the third most powerful economy in the entire Asia Pacific region. India claimed the third position on this index by overpowering Japan, which earlier held the place. While magnificent economic growth in the country has played a pivotal role in taking India to this position, it is also the youthful population of the country and excellent diplomatic engagements.
Economic Growth
The primary driving force behind India becoming the third most powerful nation in Asia has to be its economic growth, which is indispensable nowadays. The nation witnessed a super strong recovery after the pandemic, which made the Economic Compatibility Score of the nation jump by 4.2 points. This rise made sure that India became the third-largest economy in the world in terms of purchasing power parity (PPP).
Demographics
Talking about PPP, the youthful population or the demographic advantage that India has is a prime reason behind rising PPP. In Asia, the most powerful nations like Japan and China are witnessing an aging population; India has a youthful population, which means a better workforce, and more human capital and all these made India’s Future Resources score increase by 8.2 points. With this demographic advantage, India’s economy is going to expand in the future and will see better regional influence as well.
Diplomatic Engagements
Another factor that helped India secure the third position on the 2024 Asia Power Index is the diplomatic relations it has built over the last decade. With its non-aligned approach along with strategic autonomy, India easily navigated through multiple tough international relationships. In 2023, India was in the sixth position when it came to diplomatic dialogues, with its significant participation in multilateral forums to expand its Indo-Pacific role.
Strong Defence System
India’s growing defense system and increasing participation in regional security activities through Quad give a strong message to the neighboring countries and the world. Selling BrahMos Missiles, cracking multiple defines deals, and other such activities that keep military outreach limited display the strength of the nation from the defense perspective.
Cultural Influence
Finally, we have the cultural influence of India, which cannot be ignored. With its incredible culture, India has always wooed the world and this is reflected in significant cultural exports.
What is still holding India back?
While the Asia Power Index report highlighted many positives about the nation and why it has been positioned as third on the index, there are certain facts, that may be a little concerning, and holding the economy back from reaching new highs. India’s Economic Relationship Score of the country declined and Indonesia took over because of limited participation of India in regional economic framework and lower integration with big Asian countries.
Another thing to worry a little about is the Defence Network of India whose score declined too to ninth position, again after Indonesia. Even though it has the BrahMos missiles deal happening, its non-aligned approach may be working for strengthening its ties with the US but on the other hand, it is limiting its cooperation with other economies.
Having said that, the economy is flourishing, and the positive factors are overriding challenges, taking India to new highs and this trend is expected to continue.
Source: CNBC
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