AIFF President Praful Patel received the Award from AFC Vice-President Ali Kafashian at a glittering ceremony here.
"I need to thank AFC for recognising our efforts. Indian football is headed in the right direction," Patel said.
The prestigious award is given to a Member Association in recognition of its professional administration and governance as well its exceptional contribution to the development and promotion of the game at all levels within the country.
Member Associations are assessed and awarded points on various areas encompassing the association's activities such as the organisation of courses and seminars, competitions, grassroots and youth development programmes, women's programmes, social responsibility and special projects.
This was not the first time that AIFF has received an AFC Award. In 2014, AIFF had won the AFC President's Recognition Award for grassroots football.