Bhullar became the 17th golfer and the eighth Professional Golf Tour of India (PGTI) member to be conferred with the Arjuna Award, the nation's second highest sporting honour.
"It is a very proud moment for me and my family. I would like to thank the Government of India for acknowledging the fact that Indian golfers are making the country proud with their performances at the international level," Bhullar said.
PGTI members who have won the Arjuna Award in the past include Ali Sher (1991), Amit Luthra (1996), Harmeet Kahlon (1997), Jeev Milkha Singh (1999), Shiv Kapur (2002), Jyoti Randhawa (2004) and Arjun Atwal (2007).
Gaganjeet joined the illustrious list as a result of his extraordinary performances at the international stage since turning professional in 2006.
Bhullar, one of only seven Indians to appear in a Major championship, has won four titles on the Asian Tour to emerge as a major force in Asian golf. The 25-year-old also has a title to his credit on the European Challenge Tour.
"I've been on top of my game over the last one year as I have focused hard and given my hundred per cent. I now aim to win my first event on the European Tour," said Bhullar, whose ultimate ambition is to play on the PGA Tour in the United States.