In August 1971, the committee identified the requirement to patrol India's vast coastline, set up a registry of offshore fishing vessels to identify illegal activity, and establish a capable and well-equipped force to intercept vessels engaged in illegal activities.

The Indian Navy sensed that the law enforcement nature of these duties diverged from its core mission as a military service.

Admiral Sourendra Nath Kohli, then Chief of Naval Staff, hence made a recommendation to the Defence Secretary outlining the need for a separate maritime service to undertake those duties and offering the Navy's assistance in its establishment.

As a result, in September 1974, the Indian cabinet set up the Rustamji Committee, under the chairmanship of Khusro Faramurz Rustamji, with participation from the Navy, the Air Force and the Department of Revenue to examine gaps in security and law enforcement between the roles of the Indian Navy and the central and state police forces.

Bureaucratic wrangling followed, with the Cabinet Secretary making a recommendation to place the service under the Ministry of Home Affairs.

Then Prime Minister Indira Gandhi overruled the Cabinet Secretary and decided to accept the original recommendation of the Rustamji Committee to place the service under the Ministry of Defence.

[7] An interim Indian Coast Guard came into being on 1 February 1977, equipped with two small corvettes and five patrol boats transferred from the Navy.

The duties and functions of the service were formally defined in the Coast Guard Act, which was passed by India's parliament on 18 August 1978 and came into immediate effect.

[7] One of the historic operational successes of the ICG occurred in October 1999, with the recapture at high seas of a Panamanian-registered Japanese cargo ship, MV Alondra Rainbow, hijacked off Indonesia.

In May 2005, the ICG agreed to establish liaison links with the Pakistan Maritime Security Agency (PMSA).

[16] On 5 November 2024, the Indian Coast Guard and the Telecommunications Consultants India (TICL) laid foundation of a full-fledged "Tier-3" Data Centre at Mahipalpur, Delhi.

The project worth ₹588 crore (US$68 million) (including 5-year operational expenditure (opex) and a 2-year hardware warranty) will be carried out by TCIL, Yotta Infrastructure and Attero, a software solution company.

While the Indian Coast Guard Academy is under construction in Mangaluru, Dakshina Kannada district, Karnataka.

The key functions of a General-Duty Officer would be to operate weapons, sensors and different kinds of equipment on board a ship.

A Pilot Officer gets an opportunity to work at shore Air Stations along the Indian coasts and also embark ships.

In addition, helicopters are embarked on Coast Guard Offshore Patrol Vessels (OPV) to provide local surveillance and perform search and rescue mission at sea.

Technical Officers are responsible for operation of advanced technology and sensor systems on board Coast Guard vessels and aircraft, as well as on shore installations.