It was established and named after a greatest Indian poet Ghalib.

The award seeks to recognize those writers and researchers who have made "meritorious contribution" to Urdu and Persian literature.

[3] It carries an amount of cash reward ₹25,000 to 50,000 and an insignia along with a citation[4][5] and a certificate of commendation.

[2] It is generally announced by the Ghalib Institute Award Committee after a consensus, comprising uncertain number of the members and is conferred upon poets, writers and researchers at Aiwan-e-Ghalib, an auditorium in Delhi.

[6][5] It is recognized one of the highest awards in academic discipline, particularly in India.