Unpacking the Global ‘Happiness’ Rankings

Context:

• The World Happiness Report 2025 ranks Finland as the happiest country for the eighth consecutive year, while India stands at 118th position.

• The rankings have reignited debate on the meaning of well-being, the limitations of perception-based indices, and the role of governance, social trust, and mental health in shaping happiness.

Key Highlights:

Global Rankings and India’s Position

• Finland continues to top the rankings due to:

  • High social trust

  • Strong institutional performance

  • Robust welfare systems

• India ranks 118th, behind several countries with lower GDP per capita, including Pakistan, despite India’s higher economic growth.

Methodology of the Report

• Based on the Cantril Ladder, where respondents rate their life on a scale of 0 to 10.

• Key indicators used:

  • GDP per capita

  • Social support

  • Healthy life expectancy

  • Freedom to make life choices

  • Generosity

  • Perception of corruption

Core Findings

• Social trust and community kindness emerge as stronger predictors of happiness than income alone.

• Economic growth without institutional trust and social cohesion yields limited gains in perceived well-being.

Interpretational Issues

• Rankings rely on subjective, perception-based data, influenced by:

  • Cultural norms

  • Rising aspirations

  • Societal self-criticism

• India’s lower rank may reflect higher expectations from governance and public services, rather than absolute unhappiness.

Conceptual Critiques

• Presence of WEIRD bias (Western, Educated, Industrialised, Rich, Democratic societies).

• Underestimation of family-based and community trust networks, which are central to Indian society.

Policy Implications for India

• Improving happiness requires focus on:

  • Rebuilding social capital

  • Strengthening institutional credibility

  • Treating mental health as an economic and governance priority

Relevant Prelims Points:

• World Happiness Report: Published annually by the UN Sustainable Development Solutions Network.

• Cantril Ladder: Measures subjective life evaluation on a 0–10 scale.

• Key Determinants of Happiness:

  • Income (GDP per capita)

  • Social support

  • Trust in institutions

• India-specific Initiatives:

  • Tele-MANAS – National mental health helpline

  • Mind India Programme – Mental health awareness and support

• Challenges:

  • Cultural bias in global indices

  • Difficulty in capturing informal social safety nets

Relevant Mains Points:

• Conceptual Understanding:

  • Happiness vs Economic Growth: GDP is a necessary but insufficient condition for well-being.

  • Social Capital: Networks of trust and reciprocity enabling societal cooperation.

• Governance Dimensions:

  • Transparency, accountability, and service delivery shape citizen satisfaction.

  • Declining trust in institutions negatively affects perceived well-being.

• Ethical and Social Dimensions:

  • Mental health impacts productivity, social harmony, and quality of life.

  • Ethical governance must prioritise human well-being, not just growth metrics.

• Way Forward:

  • Integrate mental health into public health and economic policy.

  • Invest in community institutions, urban commons, and participatory governance.

  • Explore broader measures like Gross National Happiness (GNH) alongside GDP.

  • Improve data frameworks to reflect collective and cultural dimensions of happiness.

UPSC Relevance (GS-wise):

• GS Paper 1: Indian society, social capital, cultural values

• GS Paper 2: Governance, public policy, institutional trust

• GS Paper 3: Inclusive growth, human development

• Ethics: Well-being, mental health, quality of governance

• Prelims: Global indices, Cantril Ladder, social capital