Finland is world's happiest country, India slightly improves its happiness quotient with 118th position

Released on the UN's International Day of Happiness, the report assesses the quality of life in over 140 countries based on feedback collected from the residents.

The report evaluates various factors such as social support, health, freedom, generosity, perception of corruption, and gross domestic product (GDP) to determine the happiness levels of 147 countries, Fortune reported.

Using a scale of 0 to 10, where 10 represents the best possible life imaginable, Finland scored an impressive average of 7.74, securing its position as the happiest nation globally.

Finland is followed closely by Denmark, Iceland, Sweden, and the Netherlands.

These countries too have maintained their high ranks in happiness reports, owing to their strong social support systems, high standard of living, and commitment to work-life balance.

Interestingly, Costa Rica and Mexico have bagged spots in the top 10, securing the 6th and 10th ranks respectively.

On the other hand, the United States dropped to its lowest ranking at 24th place.  The United Kingdom is ranked at 23.

Top 10 happiest countries in the world

Finland
Denmark
Iceland
Sweden
Netherlands
Costa Rica
Norway
Israel
Luxembourg
Mexico

India's rank

India made some improvement in its happiness quotient by moving from 126th position in 2024 to 118 in the latest World Happiness Report, 2025.

However, India is still behind several conflict-affected countries, including Ukraine, Mozambique, and Iraq.

Interestingly, India excelled in social support, thanks to its strong community-focused culture and tradition of larger families living together.

However, India scored poorly on the freedom factor, which assesses whether individuals feel free to lead lives with their own choices.

Among India's neighboring countries, Nepal is ranked 92, followed by Pakistan at 109, while Sri Lanka and Bangladesh ranked further lower at 133 and 134, respectively.