Power Gap Index
Kartavya Desk Staff
Source: BS
Subject: Miscellaneous
Context: The Economic Survey 2025-26, tabled in Parliament has cited the Power Gap Index for the first time.
• The Survey highlights a critical Strategic Paradox: while India has officially entered the Major Power category, it still registers a negative Power Gap score of -4.0, indicating that the nation is operating below its full strategic potential.
About Power Gap Index:
What is it?
• The Power Gap Index is a secondary analytical measure derived from the Asia Power Index. It measures a country’s Power Efficiency—the ability to convert raw resources (wealth and military) into actual regional influence (diplomacy and networks).
• Positive Score: An Overperformer or Smart Power.
• Negative Score: An Underperformer or a state with Unrealized Potential.
Developed By:
• Organization: The Lowy Institute, an independent international policy think tank based in Sydney, Australia.
• Launch: Part of the annual Asia Power Index project (established in 2018).
Aim & Objectives:
• To show that having a large economy or military doesn’t automatically equate to geopolitical influence.
• To help nations identify where their conversion of power is failing—whether in diplomacy, trade relationships, or defense networks.
Criteria an Methodology:
• The Power Gap is calculated by comparing a country’s Comprehensive Power score against its Expected Power based on its resource base.
• It uses 131 indicators across eight thematic measures:
• Resource-Based Measures (What a country HAS) Economic Capability: GDP, technology, and global connectivity. Military Capability: Spending, armed forces, and signature weapons. Resilience: Internal stability, energy security, and nuclear deterrence. Future Resources: Demographic dividends and economic projections for 2035.
• Economic Capability: GDP, technology, and global connectivity.
• Military Capability: Spending, armed forces, and signature weapons.
• Resilience: Internal stability, energy security, and nuclear deterrence.
• Future Resources: Demographic dividends and economic projections for 2035.
• Influence-Based Measures (What a country DOES) Economic Relationships: Trade ties and investment leverage. Defence Networks: Alliances, regional diplomacy, and arms transfers. Diplomatic Influence: Global standing and foreign policy ambition. Cultural Influence: Ability to shape international opinion.
• Economic Relationships: Trade ties and investment leverage.
• Defence Networks: Alliances, regional diplomacy, and arms transfers.
• Diplomatic Influence: Global standing and foreign policy ambition.
• Cultural Influence: Ability to shape international opinion.
India’s Ranking & The 2025-26 Scorecard:
• Top 3 ranker in Asia Power Index: USA (Rank 1st), China (Rank 2nd), and India (Rank 3rd).
• In the Asia Power Index 2025, India achieved a historic milestone but remains a strategic outlier:
Metric | India’s Standing | Rank
Comprehensive Power | 40.0 / 100 | 3rd (After US & China)
Category | Major Power | First time in history
Power Gap Score | -4.0 | Lowest in Asia (Excl. Russia/N. Korea)
Strategic Significance for India:
According to the Economic Survey 2026, the negative gap is a Policy Call to Action.
• India needs to move from being a recipient of stability to a source of stability for the region.
• The survey suggests that India’s transition to a developed nation (Viksit Bharat) depends on embedding domestic capabilities into global production systems.
• Despite being the 3rd most powerful nation, India ranks lower in Defense Networks (11th) and Economic Relationships (9th), indicating areas for urgent diplomatic focus.