Australia has slipped out of the top 10 happiest countries in the world, according to the latest World Happiness Report, ranking 11th in 2025. India, meanwhile, has climbed slightly to 118th place, though it remains behind several war-torn and economically struggling nations.
The report, released on the United Nations’ International Day of Happiness, highlights the role of caring and sharing in shaping people’s wellbeing.
India’s rise in the rankings, from 126 in 2024 to 118 in 2025, has sparked debate. While India scores well in social support, thanks to its strong community networks and tradition of multigenerational households, it ranks poorly on personal freedoms. The study suggests that a sense of agency and choice is crucial to happiness—something that remains a challenge in the world’s most populous democracy.
India’s ranking places it behind nations such as Venezuela, Rwanda, Pakistan and even war-torn Ukraine, raising questions about the methodology.
Prof. Anand Ranganathan’s reaction to India’s placement was scathing: “India is ranked 118 in the just-out World Happiness Report. Totalitarian Saudi Arabia is 32, inflation-wrecked Venezuela 82, destroyed Palestine 108, begging-bowl Pakistan 109, war-torn Ukraine 111.
“Modi has made us peaceful, safe, united, stable, but unhappy. He must resign.”
Finland has retained its title as the world’s happiest nation for the eighth consecutive year, followed by Denmark, Iceland, Sweden, and the Netherlands.
In a surprising shift, Costa Rica and Mexico have broken into the top 10, ranking sixth and tenth, respectively, displacing countries like Switzerland and Canada, which once dominated the upper echelons of the list. The United States, which ranked 11th in 2012, has now fallen to its lowest-ever position at 24, while the UK sits just ahead at 23.
At the bottom of the list, Afghanistan remains the world’s unhappiest country, a position it has held since the Taliban’s return to power. Sierra Leone and Lebanon follow closely behind, reflecting the toll of economic instability and social unrest.
The World Happiness Report bases its rankings on a three-year average of responses from over 100,000 people across 140 countries, using the Gallup World Poll’s Cantril Ladder, where individuals rate their lives on a scale from 0 to 10.
The report considers social support, freedom, generosity, income, and perceptions of corruption as key factors influencing happiness. This year’s findings reveal that people consistently underestimate the kindness of others, with data showing that wallets are returned far more often than expected. The report also underscores how acts of kindness—heightened during the COVID-19 pandemic—continue to impact happiness levels globally.
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