Instituted on 2 January 1954, the award is conferred in recognition of "distinguished contribution in various spheres of activity including the arts, education, industry, literature, science, acting, medicine, social service and public affairs".

The selection criteria have been criticised in some quarters with the claim that many highly deserving artists have been left out in order to favour certain individuals.

[5] Several intended recipients, including musician Hemanta Kumar Mukherjee, sitar player Vilayat Khan,[6] academic and author Mamoni Raisom Goswami,[7] journalist Kanak Sen Deka[8] and noted Bollywood screenwriter Salim Khan, have declined the Padma Shri for various reasons.

In 2022, Bengali singer "Gitashri" Sandhya Mukhopadhyay, aged 90, turned down her offer for the Padma Shri award on the eve of the 73rd Republic Day of India.

As per media reports, the veteran singer turned down the offer since she believes that her career spanning eight decades deserved a higher award than the Padma Shri.