IIU has been established by the Indus International University(Establishment and Regulation) Act,2009, with the right to confer degree as per sections 2f and 22 of the UGC Act 1956.

IIU is sponsored by Kartha Education Society (Mumbai) with its mission being to provide quality education & research opportunities in under represented areas which haven't been served by the traditional public universities. Kartha Education Society (Mumbai) has been active in the field of education having run colleges, schools & other institutions for the past 15 years.

IIU has been set up as a non profit institution with its primary objective being to provide access to educational opportunities in various subject areas to students in rural india wherein students traditionally have had to travel to the other cities wherein the major public universities have been housed.