Why Does India Rank 118th in World Happiness Report? What Can We Do About It?

India’s rank in the 2025 World Happiness Report is 118th out of 147 countries. Concern is a valid response here. Despite India’s status as one of the fastest-growing major economies, India's rank in World Happiness Report suggests that economic growth alone hasn’t translated into greater life satisfaction for the average Indian. When reflecting on India's rank in World Happiness Report, it becomes clear that economic indicators alone do not reflect lived experience.

Even though India improved from its 126th place ranking last year and even climbed as high as 94th in 2022, it still lags behind several neighbouring countries like Nepal and Pakistan in reported happiness. How can we improve national happiness? And what factors are critical to consider? In this article, we aim to come up with possible answers to these questions.

India’s rank in the 2025 World Happiness Report

Understanding the World Happiness Report

The World Happiness Report (WHR) is an annual global study that ranks countries based on how happy their citizens perceive themselves to be. Usually released on the International Day of Happiness on March 20, it is published by the Wellbeing Research Centre at Oxford University in partnership with Gallup and the UN. Countries are ranked based on life satisfaction scores from nationwide surveys, which ask people to rate their lives on a scale from 0 to 10. To explain why some countries score higher than others, the report considers six factors: a country’s GDP per capita, the social support people have (someone to count on in times of trouble), healthy life expectancy, freedom to make life choices, generosity, and perceptions of corruption.

In the 2025 report, Finland was named the happiest country in the world for the eighth year in a row, with other Nordic nations like Denmark and Iceland also in the top three. High living standards and strong social support systems are cited as likely reasons for these countries’ consistently high rankings. Although some happiness can be attributed to wealth, trust, and connection are extremely important too. Interestingly, the 2025 WHR put a special spotlight on the theme of “caring and sharing” as vital to happiness. Simple acts like sharing meals, helping others, and fostering kindness in communities were found to have a significant impact on well-being. This context hints at where we, as a society, might need to improve.

Key Factors Behind India’s Rank in World Happiness Report

Several factors have contributed to India’s 118th-place ranking. Firstly, India’s GDP per capita remains much lower than that of the world’s happiest countries, and economic benefits are unevenly distributed. While the economy is growing fast, a large segment of the population still struggles with basic needs, and so, on average, life satisfaction is low. In fact, despite India’s growth, its overall happiness score (average life evaluation of about 4.4 out of 10) remains low for its level of development. High income inequality is one culprit – the richest 1% of Indians own over 40% of the country’s total wealth, whereas the bottom 50% share just 3%. Such disparities mean that many people do not feel the gains of growth in their daily lives, impacting their happiness.

Recent times have seen a weakening of social support and community connections, which negatively affects happiness. Having someone to rely on seems to be a major predictor of well-being, but India fares poorly on this front. For example, India ranks extremely low (132nd globally) in the simple act of sharing meals with others, with an average of only about 4 shared meals per week, reflecting more isolated lifestyles amid urbanisation and busy schedules.

As traditional joint family systems become more uncommon, community bonds are under strain as more nuclear families and individuals lead solitary lives, especially in cities. This could lead to many people feeling that they have fewer supportive relationships, which can leave them feeling lonely or vulnerable during tough times.

Health and life expectancy are other important factors. While India has made progress, life expectancy (around 70 years) still trails that of happier nations where people often live well into their 80s. Health challenges – from limited access to healthcare in some areas, to the rising burden of lifestyle diseases – can cause daily stress and reduce overall life satisfaction. Mental health is also a critical piece of the puzzle. When a significant portion of the population is dealing with health issues or uncertainty about longevity, it is reflected in lower average happiness.

Furthermore, freedom and institutional trust play a role. Happiness surveys capture people’s sense of freedom to make life choices and their trust in government and society. In India, perceptions of corruption remain high in public life, and bureaucratic hurdles can make citizens feel powerless at times. If people feel that the system is not fair or that their voices don’t matter, their sense of well-being suffers. The WHR’s “freedom to make life choices” and “perceived corruption” indicators suggest India has room for improvement here. Building more transparency, accountability, and citizen empowerment could help improve how people feel about their life trajectory.

Finally, the generosity and kindness aspect is a double-edged sword for India. On one hand, India ranks 10th in the world for the prevalence of volunteering, indicating a strong culture of people devoting time to help others. On the other hand, when it comes to monetary charity (donations) or trust in strangers, India is only mid-range (for instance, 57th in donation generosity).

Surveys even show that Indians have relatively low expectations of others’ honesty – for example, when asked if a lost wallet would be returned by a neighbour, most Indians were pessimistic, putting India at 115th on that measure. Low social trust can diminish happiness, as communities feel less cohesive. The report highlights that people tend to underestimate kindness around them, but where trust is higher, happiness is markedly higher too. All these factors together help explain why India’s happiness ranking is where it is.

India’s Rank in World Happiness Report: What Does It Mean for Us?

It's time for a reality check. A low happiness ranking for India can be disheartening, but there is important information to be gained, and solvable problems to direct our resources towards. Essentially, this ranking means that many Indians are not as satisfied with their lives as people in numerous other countries, including some nations with lower GDP or facing conflict.

For instance, the 2025 report placed India below countries like Ukraine (111th) and Palestine (108th), and just behind Pakistan (109th), which suggests that economic strength or absence of war alone does not guarantee happiness. This is a reminder that quality of life depends on everyday experiences and social conditions, whether we feel secure, supported, and hopeful.

We must look beyond traditional metrics of progress and pay attention to well-being and happiness as policy goals. It’s encouraging that India’s rank has improved from previous years, showing that progress is possible. However, an average life evaluation of 4.4 out of 10 indicates a lot of room for improvement in how people perceive their lives. Issues like inequality, unemployment or underemployment, and social exclusion can weigh down the national average of life satisfaction, even if many individuals maintain a positive outlook personally.

Recognising these gaps is the first step towards bridging them. If more Indians can access the ingredients for a fulfilling life – financial stability, good health, supportive relationships, and a sense of trust in society – our collective happiness can rise.

What Can We Do to Improve India’s Rank in World Happiness Report?

To be clear, we do not advocate for chasing a number. Instead, we see improving India's rank in World Happiness Report as being about enhancing the lived experiences of people across the country. The World Happiness Report simply highlights areas where we need to make improvements, and the good news is that there are concrete steps we can take. By focusing our resources towards large-scale, solvable problems that have evidence-based solutions, we can create an environment where more people have happier, healthier and more fulfilling lives.

Below are some optimistic and practical strategies to boost well-being in India, which in turn could reflect in a higher happiness index ranking over time. The important thing is that if you have the time and resources to spare, not only will you be improving outcomes for others, but studies also show that being more generous increases your own happiness and satisfaction too. 

How Impactful Giving Can Help Improve Happiness in India

At Impactful Giving, our vision is to build a more compassionate world where people are empowered to create a significant impact in the lives of those who need it the most. We help Indian donors cut through the noise and find high-impact opportunities.

We evaluate and recommend NGOs, doing the research so that you don’t have to. We prioritise cost per outcome, evidence of effectiveness, and potential for scale. To clarify, we don’t fundraise for specific organisations. We offer transparent guidance on where and how to give.

Some of our top recommendations focus on:

1. Health and Development: Vaccination campaigns, nutrition programs, and disease prevention

2. Animal welfare: Improving animal wellbeing in industrial farms, reduction in factory-farmed meat

3. Climate Change: Government and policy interventions for clean air and climate change risks

Each option is selected for its potential to shift lives meaningfully, in a happier and more fulfilled direction. If you're unsure where to begin, start small. Pick one cause, review the evidence, and make a small donation. If you’re unsure about any step of the process, we offer free advisory calls to answer any questions you may have. We are here to help.

FAQs

1. What Factors Contribute to India’s Low Ranking in World Happiness Report?

High income inequality, limited access to quality healthcare, weak social support systems, and low trust in institutions are some potential reasons for India’s low ranking. India also fares poorly on measures like shared meals and perceived corruption. Mental health challenges and feelings of isolation, especially in urban areas, further reduce well-being. Together, these factors contribute to a national average life satisfaction score of just 4.4 out of 10.

2. How Can We Improve India’s Rank in World Happiness Report?

Key steps include reducing inequality, expanding access to health and mental health services, building stronger social bonds, and increasing trust in institutions. Donating and volunteering to support evidence-based approaches like nutrition programs, clean air initiatives, and community support systems can raise well-being across the country. As more Indians gain financial stability, feel supported, and trust their surroundings, national happiness is likely to improve over time.

3. Why Should We Focus on Mental Health to Improve Happiness?

Mental health directly influences how people evaluate their lives. Even with basic needs met, anxiety, depression, and social isolation can reduce life satisfaction. India faces rising mental health challenges but limited access to care. The World Happiness Report shows that having someone to rely on and sharing acts of kindness greatly improve well-being. Strengthening mental health support, social connections, and emotional resilience is crucial to improving happiness across all age and income groups.

4. What Role Does Charitable Giving Play in Improving National Happiness?

Charitable giving supports scalable, evidence-backed solutions to major social problems, such as malnutrition, disease, and climate-related risks. When donors fund high-impact interventions, they improve others’ lives and boost national well-being. Research also shows that generous acts increase the giver’s happiness. India ranks high in volunteering but lower in donation-based generosity. Encouraging more giving can build trust, strengthen communities, and make happiness gains more inclusive.