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Power Gap Index

1 min read Source: Business Standard
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Why in News?

For the first time, the Economic Survey 2025–26 has cited the Power Gap Index, highlighting a strategic paradox: although India has entered the Major Power category globally, it still records a negative Power Gap score (-4.0), indicating unrealised strategic potential.

What is the Power Gap Index?

  • The Power Gap Index measures a country’s Power Efficiency—its ability to convert material resources into real geopolitical influence.
  • It is a secondary analytical tool derived from the Asia Power Index.
Interpretation
  • Positive score:
    • Overperformer / Smart power (effective conversion of resources into influence)
  • Negative score:
    • Underperformer / Unrealised potential

It challenges the assumption that economic size or military strength automatically equals influence.

Developed By
  • Lowy Institute, Sydney, Australia
  • Part of the Asia Power Index project (launched in 2018)

Methodology & Criteria

How is the Power Gap Calculated?
  • Power Gap = Comprehensive Power – Expected Power
  • Expected Power is estimated based on a country’s resource base.
Eight Thematic Measures (131 Indicators)
A. Resource-Based Measures (What a country HAS)
  1. Economic Capability – GDP, technology, connectivity
  2. Military Capability – Defence spending, force strength, weapon systems
  3. Resilience – Energy security, internal stability, nuclear deterrence
  4. Future Resources – Demographics and economic outlook (to 2035)
B. Influence-Based Measures (What a country DOES)
  1. Economic Relationships – Trade networks, investment leverage
  2. Defence Networks – Alliances, partnerships, arms transfers
  3. Diplomatic Influence – Global standing, diplomatic reach
  4. Cultural Influence – Soft power and opinion shaping

India’s Ranking: 2025–26 Scorecard

IndicatorIndia’s StatusRank
Asia Power Index RankTop 33rd
Comprehensive Power Score40.0 / 1003rd (after US & China)
CategoryMajor PowerFirst time
Power Gap Score–4.0Lowest in Asia (excluding Russia & N. Korea)
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