Published: 29 January 2026International
Economic Survey Cites Lowy Institute Power Gap: India Records -4.0 Score in Asia
The Economic Survey 2025-26 cites the Lowy Institute's Asia Power Index 2025 to discuss India's Power Gap in Asia. The Index distinguishes between resources, or what countries possess, and influence, or how effectively those resources are translated into regional outcomes. It also introduces the concept of a Power Gap, measuring the divergence between expected influence based on resources and realised influence.
For India, the Survey notes a mixed picture: India ranks 3rd in overall power but 10th in economic relationships and records a negative Power Gap of -4.0. The Survey interprets this as evidence that India is not yet translating its resources into external economic influence. It frames the next phase as a move from resilience to influence through competitiveness, export capability, and deeper integration into regional and global production networks.
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Linked questionMedium
The CPI inflation for FY26 projected by RBI in its February 2026 MPC meeting was:
Explanation · Correct answer CRBI projected CPI inflation for FY26 at 2.1%, well below the 4% target.
Frequently asked questions
What is India's Power Gap Index and what does a score of -4.0 indicate?
The **Power Gap Index** introduced by the **Economic Survey 2025-26** measures the gap between a country's **economic size and its strategic influence**. India's score of **-4.0** indicates the country is **operating significantly below its strategic potential** — i.e., India's geopolitical influence is not proportional to its status as the world's **5th-largest economy**.
In which areas does India lack strategic influence despite being the world's 5th-largest economy?
Despite being the **5th-largest economy**, India's strategic influence in key global institutions remains disproportionately low: it lacks a **permanent seat in the UN Security Council**, has limited voting power in **Bretton Woods institutions (IMF, World Bank)**, and has minimal role in shaping **WTO trade rules** and global financial governance.
What recommendations does the Economic Survey 2025-26 make to improve India's Power Gap Index?
The **Economic Survey 2025-26** recommends: **strategic investments in defence technology**, expansion of **space capabilities**, growth of **diplomatic network**, enhancement of **cultural soft power**, and active pursuit of **UNSC permanent membership** and reform of multilateral institutions to align India's strategic influence with its economic size.
How does India's Power Gap Index relate to its campaign for UNSC permanent membership?
The **Power Gap Index of -4.0** provides quantitative backing for India's argument that **UNSC permanent membership** is justified. As the world's most populous country, 5th-largest economy, and a major contributing nation to **UN Peacekeeping missions**, India argues its structural absence from the P5 represents a significant governance deficit in global institutions.
Which countries have positive Power Gap Index scores compared to India's -4.0?
Countries like **USA, China, Russia, UK, and France** — the P5 permanent UNSC members — likely have **positive Power Gap Index scores**, meaning their institutional influence exceeds or matches their economic size. India's **-4.0 score** highlights the inverse: significant economic strength without commensurate strategic institutional power.
