Gill, 32, the Director of Strategy at 10 Downing Street, has been honoured with an OBE for public service as part of what is referred to as "Dissolution Honours" conferred by Queen Elizabeth II on the advice of the UK government.
Gill, born in the UK to Indian parents, has been a long- serving adviser to the British Prime Minister and started working for him in 2006. The Oxford graduate is believed to be a driving force behind some of Cameron's recent anti-extremism speeches.
The honours coincide with the announcement of 45 new peers to now attend House of Lords, including former foreign secretary William Hague. The majority of the new peers are from the Conservative party, with the Lib Dems getting 11 and Labour eight.
Senior Labour figures to be elevated include former ministers David Blunkett, Alistair Darling and Tessa Jowell.
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Lib Dems who lost their seats or stood down at the general election in May 2015 have been elevated to the Lords, including former leader Sir Menzies Campbell, Sir Alan Beith and Lynne Featherstone.
Former Lib Dem ministers Vince Cable and Danny Alexander, who both lost their seats, had turned down the chance to enter the Lords and have been knighted instead.
The general view was that Cameron has rewarded his Downing Street and Conservative Party key figures with peerages and other honours. Downing Street stressed that previous prime ministers had all given honours to their aides.
Dissolution Honours relate to the dissolution of the UK Parliament and the 2015 list released today relates to the end of the 2010-2015 Conservative party led coalition government with the Liberal Democrats.
OBE is awarded for having a major local role in any activity, including people whose work has made them known nationally in their chosen area while MBE is awarded for a significant achievement or outstanding service to the community. An MBE is also awarded for local 'hands-on' service which stands out as an example to other people.