World Happiness Report 2025

Syllabus Areas:

GS I - Society

GS III - Economy

The World Happiness Report 2025 has reignited debate after ranking Finland the happiest nation for the eighth consecutive year, while India placed 118. The contrast between economic progress and perceived wellbeing raises fresh questions about how global indices truly measure happiness.

The Core Paradox: Prosperity vs. Perceived Happiness

  • Finland tops the World Happiness Report for the eighth consecutive year, while India ranks 118, and Pakistan 109, despite massive economic disparities.
  • India is the world’s fifth-largest economy, yet scores lower than Pakistan, which struggles with repeated IMF bailouts.
  • This contrast raises a central question: Is happiness economic, social, perceptual, or something else entirely?
World Happiness Report 2025

How the Report Measures Happiness

  • Uses the Cantril Ladder (0–10 life evaluation scale) from the Gallup World Poll.
  • Results are linked with six indicators:
    GDP per capita, social support, life expectancy, freedom, generosity, corruption perception.
  • The report acknowledges that social trust and belief in community kindness predict happiness more strongly than income.

The Mirage of Metrics: Why Numbers Mislead

  • Perceptions differ across societies:
    • Nations with low expectations often report higher happiness because people adapt to hardships.
    • Democratic, high-aspiration societies like India show lower satisfaction as citizens demand better services and governance.
  • This explains why:
    • The United States has slipped to 24 despite wealth.
    • Nordic countries with high taxes dominate due to deep trust and strong institutions.

Why India Scores Low

  • a. Rising Aspirations
    • Rapid growth increases expectations; dissatisfaction reflects ambition, not unhappiness.
  • b. Weak Institutional Trust
    • Uneven governance dilutes trust in public institutions.
    • In contrast, Nordic nations score higher because people trust systems enough to believe a lost wallet will be returned.
  • c. Shrinking Social Connections
    • Globally, 19% of young adults say they have no one to rely on — up 39% since 2006.
    • In India, migration and digital life weaken real-world social networks despite economic gains.

India’s Hidden Strength: Informal Social Capital

  • Family and community bonds remain robust.
  • During COVID-19, millions returned to villages for emotional and social security, not just economic reasons.
  • These informal networks are largely ignored by global metrics, which overvalue Western-style institutional trust.

The WEIRD Bias in Global Indices

  • The report is influenced by the WEIRD worldview — Western, Educated, Industrialized, Rich, Democratic.
  • It privileges individualistic institutional trust and overlooks collectivist cultures like India, where family and community form the primary safety net.

The Politics of Perception

  • Many global indices depend on small pools of Western “experts,” creating systemic bias.
  • Democracies like India report more dissatisfaction simply because people speak freely, while controlled regimes appear “stable” due to silence.
  • India’s rank fluctuates widely (94 to 144 over a decade), reflecting perception swings, not fundamental wellbeing shifts.

Emerging Shifts in India’s Approach

  • Mental health and wellbeing are entering mainstream policy:
    • Tele-MANAS mental health helpline network
    • Initiatives focusing on workplace wellbeing and emotional resilience
  • Happiness is increasingly treated as a governance priority, not a luxury.

Pathways for India to Climb the Happiness Ladder

  • a. Rebuild Social Capital
    • Create community spaces, public interactions, shared meals, and inter-generational bonds.
    • Household size and perceived community kindness significantly increase happiness.
  • b. Strengthen Institutional Trust
    • Simplify citizen-state interfaces.
    • Transparent, efficient services—from ration cards to railways—build confidence and satisfaction.
  • c. Integrate Mental Health into Economic Planning
    • Mental wellbeing boosts productivity; WHO says $1 invested → $4 returns.
    • Recognising mental health as part of economic policy is crucial for sustained national wellbeing.

India’s Rank Reflects Aspiration, Not Despair

  • India’s restlessness, debate culture, and demands for better governance reflect a society on the move, not one in decline.
  • Lower satisfaction scores signify higher expectations from life and the state.
  • India is not “unhappy”—it is unfinished, still shaping its vision of a more equitable, connected, and emotionally secure society.

Prelims Questions:

1. Consider the following statements regarding the World Happiness Report 2025:
  1. It ranks countries primarily on GDP per capita and life expectancy alone.
  2. It uses survey responses from the Gallup World Poll based on the Cantril Ladder.
  3. Social trust and perception of community kindness significantly influence rankings.
Which of the statements given above is/are correct?
  1. 1 and 2 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3
2. With reference to global perception-based indices such as the World Happiness Report, consider the following criticisms:
  1. They may reflect expectations and subjective self-assessment rather than objective wellbeing.
  2. Democratic countries may score lower due to greater openness in reporting dissatisfaction.
  3. They give greater weight to informal community networks than to institutional trust.
Which of the statements given above is/are correct?
  1. 1 only
  2. 1 and 2 only
  3. 2 and 3 only
  4. 1, 2 and 3
3. In the context of wellbeing research, which of the following best explains the “WEIRD bias”?
  1. The tendency of global indices to overvalue economic growth in developing countries.
  2. The tendency to prioritise Western, Educated, Industrialised, Rich and Democratic norms in methodology.
  3. The assumption that collectivist cultures naturally report lower happiness.
  4. The classification of countries based solely on per-capita income and institutional stability.
4. Which of the following factors most strongly influence higher happiness levels in Nordic countries, according to wellbeing research?
  1. High levels of institutional trust
  2. Strong social support and public services
  3. Low expectations and adaptive preferences
  4. High tax rates directly increasing life satisfaction
Select the correct answer using the code given below:
  1. 1 and 2 only
  2. 1, 2 and 4 only
  3. 2, 3 and 4 only
  4. 1, 3 and 4 only
5. Consider the following statements regarding India’s low ranking in the World Happiness Report:
  1. Rising aspirations and democratic openness can reduce reported satisfaction.
  2. Informal social capital in India is fully reflected in global wellbeing metrics.
  3. Variations in ranking over the decade reflect changes in perception as much as changes in actual wellbeing
Which of the statements given above is/are correct?
  1. 1 and 2 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3