Why is Finland the Happiest Country Again, While India Ranks 118? A UPSC-Focused Analysis on Metrics, Perceptions & Policy Lessons**

 

Why is Finland the Happiest Country Again, While India Ranks 118?

A UPSC-Focused Analysis on Metrics, Perceptions & Policy Lessons**

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🧩 Introduction: A Puzzling Paradox

The World Happiness Report (WHR) 2025 again places Finland, Denmark, Iceland and Sweden at the top.

India scores 4.389/10, ranking 118, while Pakistan ranks 109 — despite battling political instability and frequent IMF bailouts.

This raises three fundamental questions for UPSC:

1. Is happiness an economic measure at all?

2. Do global indices reflect reality, or perceptions?

3. What does India’s “low happiness” rank actually tell us?

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📊 How the Happiness Index Works — and Why It Misleads

The WHR uses the Gallup World Poll and the Cantril Ladder, asking people to rate life from 0 to 10 based on:

• GDP per capita

• Social support

• Life expectancy

• Freedom

• Generosity

• Corruption perception

However, the index measures perceptions, not realities.

The “Low Expectations, Higher Happiness” Paradox

Countries facing chronic hardship often report higher happiness because:

• People adapt

• Expectations remain low

• Social comparison is weaker

This explains why:

• Pakistan scores higher

• U.S. fell to rank 24 despite immense wealth

• Nordic nations dominate due to trust and strong welfare systems

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🟠 India’s Case: Prosperity Without Proximity

India is the 5th largest economy with a booming digital sector and rising incomes.

Yet WHR places it lower because happiness ≠ GDP.

❗ The Report admits:

“Belief in community kindness and social trust predict happiness better than income.”

Where India struggles:

1. Shrinking real-world social networks

2. Urban loneliness

3. Migration-induced fragmentation

4. Infrastructure growing faster than social capital

India’s dissatisfaction is often a mark of higher aspirations, not unhappiness.

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🟡 The Politics of Perception: Biases in Global Indices

UPSC candidates must understand how global indices work.

A 2022 study by the Economic Advisory Council to the PM exposed that many “global rankings” rely on:

• Western expert opinions

• Small sample sizes

• Subjective definitions of freedom and happiness

• The WEIRD bias — Western, Educated, Industrialised, Rich, Democratic

Consequence:

• Authoritarian countries look “stable”

• Democracies appear “chaotic” due to vocal citizens

• Open dissent lowers rankings

Hence, India’s low rank often reflects democratic self-criticism, not genuine unhappiness.

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🔵 Why Finland Tops the List — Insights for India

Finland scores high not due to income (lower than U.S.) but due to:

✔️ Deep social trust

People believe a lost wallet will be returned.

✔️ Equality & fairness

Low corruption perception creates psychological safety.

✔️ Strong community culture

Small populations → high interpersonal connection.

✔️ State welfare + low social anxiety

Childcare, healthcare, housing support → people worry less.

India can learn from the trust-based social architecture, not the tax model.

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🔴 India’s Rank: A Mirror of Aspirations, Not Misery

India’s scores over time show fluctuations tied to public mood, not pure well-being:

• Improved ranking in 2022 – post-COVID recovery, PMGKAY support

• Lower rank in 2012 – public anger over corruption, slower growth

India’s democracy encourages

• criticism

• demands for reform

• constant comparison

This leads to lower self-reported satisfaction despite rising real living standards.

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🟢 Why Pakistan Ranks Higher Than India

Pakistan’s happiness rank rises due to:

• Low baseline expectations → higher perceived satisfaction

• Strong local community bonds

• Lower media scrutiny

• Political dissatisfaction underreported

• Smaller urban pressure

This is not a sign of well-being — it is a sign of adaptation to hardship.

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🧠 Mental Health, Social Capital & Institutional Trust: The New Determinants

The WHR confirms that social trust > income.

India’s areas of improvement:

1️⃣ Rebuild Social Capital

• Urban community centres

• Shared spaces

• Public libraries, parks, local clubs

• Inter-generational programs

2️⃣ Strengthen Institutional Trust

• Corruption-free service delivery

• Transparent digital systems (FASTag, UPI, DigiLocker)

• User-friendly grievance redressal

3️⃣ Mental Health as Economic Policy

• Tele-MANAS

• Mind India

• Workplace well-being

• School counselling reforms

WHO finds:

$1 investment in mental health → $4 in productivity gains.

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📝 UPSC Mains Pointers

GS2 (Governance)

• Trust-building in institutions

• Bias in global indices

• Citizen-state interaction improvement

• Role of social capital in governance

GS3 (Economic Development)

• GDP vs GNH debate

• Social infrastructure

• Impact of migration and digitalisation on mental health

Essay

Topics like:

• “Pursuit of Happiness in a Rapidly Changing World”

• “Is Development Alone Enough for Human Well-being?”

• “Trust as the Currency of a Healthy Society”

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📌 Conclusion: Rank 118 Does Not Mean India is Unhappy

India’s place on the happiness ladder reflects:

• High aspirations

• Democratic dissatisfaction

• Self-awareness

• Expectation of better governance

• Rapid social change

In reality, India is not “unhappy”.

India is unfinished — a nation still refining institutions, building communities, and expanding the idea of well-being.

Happiness is not a possession.

It is a pursuit — and India is deeply, restlessly pursuing it.