The reasons have been discussed in the paper to great length, the ultimate answer to the question being that GDP is not the only key aspect that helps in measuring the welfare or happiness of a nation and that there is more to that.Gross Domestic Product is a value of all the final goods and services that are produced in the domestic territory of an economy, within a single accounting year. This is used as a measurement for finding out the different levels of growth in an economy. Not only that, but the GDP is used to compare the growth and development of one economy with another as well. However, with time, many economists have begun trying to find out the happiness index faced by the citizens of a country, with the help of the GDP.However, they fail to pose the following questions. what is the relationship between GDP and welfare? Can GDP be regarded as a good index of welfare among the people of a country? Or is it simply a measure for finding out the kind of growth and development the economy has undergone, not taking into account the actual distribution of wealth?While looking at the figures of per capita income and national income of a country, on the whole, one may find that the country is prospering very well and has achieved growing levels of independence when it comes to its market segments and trade-related areas. The country might be doing really well in almost all fields – right from the primary to the tertiary sector. But just because something looks good from the outside, it cannot be judged inside as well, can it?In simple terms, the capacity to purchase goods and services is what makes people feel satisfied. However, this capacity or purchasing power is available to the people of a nation on the basis of their incomes. If they have low incomes, then they are able to afford lesser and vice versa. The happiness index of a person thus depends on the kind of satisfaction he is able to achieve, which in turn, as discussed above, is a direct reaction to the level of income earned by him.