According to a statement from the Indira Gandhi Memorial Trust, Mr Singh was unanimously chosen for the award by an international jury chaired by ex-president Pranab Mukherjee.
The Trust said Mr Singh is only the third Indian prime minister to complete two full terms as the PM. His tenure witnessed the path-breaking nuclear agreement with the US and the Copenhagen Climate Change agreement, the statement said.
Mr Singh, who as the governor of the Reserve Bank of India and the finance minister in the government headed by PV Narasimha Rao, played a pivotal role in ushering economic reforms, it said, adding that as prime minister he led India in achieving the highest sustained rate of economic growth since Independence.
The international award named after former prime minister Indira Gandhi was instituted in 1986. The last two recipients have been the Indian Space Research Organisation and the UN High Commission for Refugees.