It was set up by the Ministry of Education, Government of India in 1964 and started functioning from 20 October 1965.

The building that houses the institute was originally built as a home for Lord Dufferin, Viceroy of India from 1884 to 1888, and was called the Viceregal Lodge.

A bell made of eight metals which was presented by the king of Nepal was available to be admired by tourists until it was stolen in April 2010.

[3] The institute is administered by a Society and a Governing Body, the members of which come from varied backgrounds.

For Fellows, the backbone of the institute, the duration of regular fellowships ranges from a minimum of six months to a maximum of two years.

From April to November, the fellows' weekly seminar is the primary forum for formal interaction.

From December to March, they may engage in field work, library and archival consultations outside Shimla.

Like visiting professors, they too are distinguished in their respective fields, but their stay is limited to a week and all facilities of the institute are extended to them.

Guest scholars visit the Institute – subject to the availability of accommodation; they too are welcome to utilize the facilities on a nominal payment.

The partnership between the Ministry of Human Resource Development, Government of India, the Indian Institute of Advanced Study, and the United Nations Development Programme (UNDP) was officially launched at an event held in Delhi on 4 January 2013.

Policy Advisory Services, South-South Cooperation, Research on HD issues and Monitoring and Evaluation.

[5] These include monographs submitted by its fellows; edited proceedings of seminars, symposia, workshops and conferences held at the institute; lectures given by visiting professors; and occasional papers presented by fellows and visitors to the institute.