It’s also climbed seven places to 21st globally, and features among the top-10 countries across 21 indicators.
The survey of 155 nations measures happiness levels using factors such as life expectancy, per capita income, social support as well as absence of corruption.
Norway tops the latest rankings, followed by last year’s happiest country Denmark, Iceland and Switzerland.
Central African Republic, Burundi, Tanzania and Syria are at the bottom of the list.
India is ranked a dismal 122nd behind Pakistan, which is 80th on the list and Nepal which is ranked 99th.