What is the Power Gap Index?

The Economic Survey 2025–26 makes a first-of-its-kind reference to the Power Gap Index, citing it as evidence that India is operating below its full strategic potential.

What is the Power Gap Index?

• Developed by the Australia-based Lowy Institute
• A derived analytical measure from the Asia Power Index
• Measures the gap between a country’s expected influence (based on resources) and its actual influence in the region

Interpretation:

• Positive score → Effective conversion of resources into influence
• Negative score → Underperformance despite strong capabilities

India’s Performance

• Power Gap Score:–4.0
  • Lowest in Asia, excluding Russia and North Korea
• Indicates that India possesses significant resources but is not fully leveraging them geopolitically

Asia Power Index 2025

• India ranked 3rd out of 27 countries/territories
• Overall score: 40.0 / 100
• Entered the “major power” category for the first time
• Top two: United States and China

Comparison with Other Countries

Country	Power Gap Score
Japan	+1.0
Australia	+8.0
Singapore	+5.2
South Korea	+5.1
India	–4.0

These countries convert relatively smaller resource bases into greater regional influence through diplomacy, alliances and economic statecraft.

Survey’s Assessment

• India’s macroeconomic fundamentals are strong
• However, economic size and growth have not yet translated into proportional external influence
• Gaps are particularly visible in:
  • Economic diplomacy
  • Defence partnerships
  • Strategic and institutional leadership in the region

Source: BS