The daughter of the legendary Ravi Shankar, who passed away last year, will play a set that will include tracks from "Traces Of You", the new album she recorded with composer Nitin Sawhney and her half-sister Norah Jones.
Anoushka is part of an exciting line-up being brought for the free event in Trafalgar Square by Mayor Boris Johnson along with media partner Zee and the Diwali in London Committee.
"I am thrilled to be a part of this wonderful event and am excited about performing for the multi-cultural crowds of London during this beautiful festival," she said.
Londoners from all communities and visitors to the British capital have been invited to attend the celebrations, which feature traditional and contemporary music and dance. Stalls selling food and drinks and activities for children are also part of the event.
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Mayor Johnson said: "London would not be the exciting and dynamic city that it is without the many communities that contribute to its dynamism and prosperity, something that is reflected in festivals like our Diwali celebrations.
Ameet Aggarwal, the chairman of the Diwali in London Committee, said the festival could be enjoyed by every community. "I am delighted Trafalgar Square is hosting the Diwali celebrations yet again," he said.
"This is not only an occasion of great significance to Hindus, Sikhs and Jains, but with its underlying themes of peace and mutual respect it has relevance and meaning for all Londoners," he added.