It was established in 1954[3] under the umbrella of the University of Delhi and is often cited as one of the best business schools in India.

The first set of professors were trained at the Stanford Graduate School of Business.

FMS earlier had its own entrance exam which was discontinued starting session 2012–14.

However, candidates falling under some categories are exempted from appearing in this entrance test.

Of India has proposed a new chair in the name of the former Indian Prime Minister Rajiv Gandhi, now known as Rajiv Gandhi Chair for Technology Management and Innovation (MHRD, GOI) to promote management of innovation.