I believe it is a toss up between Europe and India.Europe was the fourth nation to independently orbit a human rated vehicle with the ATV, alshough it is not reentry capable. India has launch vehicle capability but has not yet flown a human rated vehicle.It depends on who has the financial wherewithal and will to build a human rated spacecraft that can orbit and return. I think Europe has a head start with Ariane V/ATV. They just have to go the next step by developing a reentry vehicle. The lengthy flight experience of Ariane V bodes well for man-rating it, and it was always intended to be man-rated for Hermes.I think India has farther to go, but the Indians are quick studies on anything they apply themselves to. Still, I think the edge goes to Europe at the moment. Any other nations have more developmental work to do and aren't in the running right now.
People are talking about space race between China and USA. I think it's baseless. But if India put a man on the space, that will definitely trigger a space race in Asia. As a space fan, i would like to see a space race.
I think India is in pole position.
Fundamentally I agree with you here however - just one small nit - Europe is not a nation - its a continent - I don't see any individual european Nation ever doing this on their own...
May I be so bold as to suggest the country of Iran next, because they already have missiles that can travel 5000km, the Shehab-5 I believe its called. Clearly the intention to put satellites into orbit is there, but human cargo? Worth a thought.