The Indian government announced that the princess was being conferred with the award for her contribution in the field of literature and education. The Padma Bhushan is awarded for distinguished service of a high order.
A statement said Her Royal Highness is the only foreign recipient of the award this year.
In the last 35 years, about 35 foreigners have been conferred with the Padma Bhushan. The president of India confers the award at ceremonial functions in Delhi.
Her Royal Highness was also the recipient of the Indira Gandhi Prize for Peace, Disarmament and Development, in 2004, and the first World Sanskrit Award given by India, in 2016.