"His administration promises to bring economic rejuvenation to other beleaguered parts of India. The world is as impressed as the citizens of India: So far he's toured the U.S. and China and met with his Southeast Asian neighbors,” the magazine said.
Modi has not visited China since assuming office as prime minister.
Other Indians on the list of 72 most powerful people in the world included Reliance Industries Chairman Mukesh Ambani at 36th, ArcelorMittal Chairman and CEO Lakshmi Mittal at 57th and Microsoft's Indian-born CEO Satya Nadella at 64th spot.
Out of the list is Congress Party chief Sonia Gandhi, ranked 21st last year.
Russian President Vladimir Putin once again topped the list, ahead U.S. President Barack Obama. Six of the most powerful are from China, three from India, two from Hong Kong, and one is Taiwan. Nine of the 72 are women. Narendra Modi featured on the cover of Forbes India ahead of his election as prime minister.