(English Honours) from Elphinstone College, University of Bombay in 1949, Bhatia studied composition with Howard Ferguson, Alan Bush and William Alwyn at the Royal Academy of Music, London, where he was a recipient of the Sir Michael Costa Scholarship (1951–54).

Bhatia predominantly worked with filmmakers in the Indian New Wave movement, such as Govind Nihalani (Tamas, which won Bhatia a National Film Award for Best Music Direction), Kundan Shah (Jaane Bhi Do Yaaro), Aparna Sen (36 Chowringhee Lane), Saeed Akhtar Mirza (Mohan Joshi Haazir Ho!

Bhatia has scored television shows such as the medical drama Lifeline, Khandaan, Yatra, Wagle Ki Duniya, Banegi Apni Baat and the 53-episode Bharat Ek Khoj based on Jawaharlal Nehru's The Discovery of India, as well as numerous documentaries.

His most frequently performed works are the Fantasia and Fugue in C for piano, the Sinfonia Concertante for strings, and the song cycle Six Seasons.

His Reverie was performed by Yo-Yo Ma at a concert in Mumbai in January 2019,[8] and the first two acts of his opera Agni Varsha, based on Girish Karnad's play of the same name, premiered in New York City in 2012 in a production by soprano Judith Kellock.