Finland Tops World Happiness Report for 8th Year, India Ranks 118th
Team Finance Saathi
21/Mar/2025

What's covered under the Article:
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Finland secures the top spot for the 8th consecutive year in the World Happiness Report 2025.
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India improves its ranking to 118 but remains behind Pakistan, Israel, and Ukraine.
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The US drops to its lowest-ever rank at 24, with more people dining alone than ever before.
The World Happiness Report 2025 has once again crowned Finland as the happiest country in the world, marking its eighth consecutive year at the top of the rankings. The Nordic nation continues to outperform others in areas such as social support, income, freedom, and trust in institutions, reinforcing why it remains the global leader in happiness.
India’s Ranking Sees a Modest Improvement
While India has shown some improvement in its happiness score, it still has a long way to go. India ranked 118th out of 147 countries, a slight jump from 126th place last year. Despite this progress, India still trails behind war-torn nations like Ukraine (111) and Israel (8).
One of the most surprising findings of this year’s report is that Pakistan (109) remains ahead of India in the happiness rankings, even though Pakistan’s position has dropped from 108 last year. The report suggests that social cohesion and community support could be factors contributing to Pakistan’s relatively higher happiness levels.
How India Fares in Benevolence Rankings
Although India ranks low in overall happiness, it has performed significantly better in categories related to benevolence. The country is ranked:
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57th for the rate of donations
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10th for the rate of volunteering
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74th for the rate of helping a stranger
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115th in the category of wallet returned by a neighbor
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86th for wallet returned by a stranger
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93rd for wallet returned by police
These rankings indicate that while India’s overall happiness score is low, acts of kindness and social goodwill remain strong in certain areas.
The US Slips Further in Happiness Rankings
For the first time ever, the United States has dropped to its lowest position, ranking 24th. This is a sharp decline from previous years when the country consistently ranked among the top 20.
One major reason cited for this drop is increased social isolation. According to the report, the number of Americans dining alone has increased by 53% over the past two decades, which is seen as a strong indicator of reduced social connections and happiness.
Afghanistan Remains the Unhappiest Country
At the bottom of the list, Afghanistan retains its position as the world’s unhappiest country. The report highlights how Afghan women, in particular, report extreme dissatisfaction with their lives due to ongoing conflict, instability, and restrictions on their freedoms.
Following Afghanistan, Sierra Leone (146th) and Lebanon (145th) rank as the second and third unhappiest nations in the world.
Nordic Countries Continue to Excel
As in previous years, Nordic nations dominate the top of the rankings. Countries like Denmark, Iceland, and Sweden consistently perform well due to their high levels of social trust, economic stability, and quality of life.
One key finding in the report is that these countries rank among the highest in terms of people returning lost wallets, showcasing a culture of honesty and trust.
Bhutan and Gross National Happiness
Bhutan, known for its emphasis on Gross National Happiness (GNH), is notably absent from the rankings this year. While Bhutan does not participate in the World Happiness Report’s methodology, it remains a unique case where happiness is officially measured as a policy goal rather than an economic indicator.
The Role of Trust and Social Connections in Happiness
One of the most fascinating takeaways from this year’s report is that believing in the kindness of others is a key driver of happiness.
For example, people who believe that others would return their lost wallet tend to report higher levels of happiness. This finding suggests that fostering a sense of trust and community may be just as important—if not more—than economic prosperity in determining a nation’s happiness.
Conclusion
The World Happiness Report 2025 provides important insights into global well-being. While Finland continues to shine, India has seen slight improvement but still has work to do. The United States’ decline, coupled with the continued struggles of Afghanistan and other lower-ranking nations, highlights the need for governments to prioritize social connections, trust, and mental well-being alongside economic development.
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