News: Economic survey 2025-26 has cited data from the Power Gap Index to explain how India is a victim of geopolitics and a strategic power gap and is operating below its full strategic potential.
About Power Gap Index
- It is a secondary analysis derived from the Asia Power Index.
- Released by: Australia-based Lowy Institute.
- It reveals the difference between a country’s expected influence, based on its resources, and its actual influence in the region.
- This insight also helps analysts and policymakers assess how effectively a country converts that strength into regional influence.
- What does positive power gap shows: A positive Power Gap score means a country exerts more influence than its resources would predict. It suggests effective conversion of resources into influence through diplomacy, alliances and economic statecraft.
- What does negative power gap shows: A negative Power Gap score indicates underperformance. It highlights a disconnect, where a country possesses significant capabilities but is not leveraging them fully in geopolitics.
- How the Power Gap Index is calculated: It consists of eight measures of power, 30 thematic sub-measures and 131 indicators.
- The Index scores 27 countries’ comprehensive power using a weighted average across eight thematic measures.
- The eight measures of power, consists of four resource measures, which look at what countries have, and four influence measures, which look at what countries do with what they have.
- These are combined into a weighted score out of 100.
- It is then derived by comparing this overall power score with an expected score based solely on a country’s resource base.
- Findings of the Index
- The Index shows that India is not fully utilizing its strategic potential.
- India has a Power Gap score of –4.0, the lowest in Asia (excluding Russia and North Korea), indicating a gap between its capabilities and actual influence.
- Japan has a Power Gap score of 11.3, which reflects its position as a “smart power.” Japan effectively uses limited resources to achieve strong diplomatic, economic, and cultural influence in the region.
- North Korea has a Power Gap score of –8.2. It derives most of its power from its military strength and nuclear weapons. However, its diplomatic and economic isolation limits its regional influence.
- Many developing countries show influence shortfalls. This reflects unrealized potential and internal constraints that prevent them from projecting power internationally.
