Hanan Al Hroub had bagged the 2016 prize for developing a unique play and learn technique to help traumatised Palestinian primary school children.
"Often when Indian education is in the news it focuses on negative stories, from lack of training to lack of funding.
"Though these issues are important, the bigger story we're missing is the incredible work being done by Indian teachers up and down the country that is making a difference to the lives of countless children every day," Al Hroub said.
She also praised India's own history of taking in refugee children.
Also Read
"India has a strong and proud history of giving a warm welcome to refugees over a number of years and should be an example to many countries as the current global refugee crisis grows," Al Hroub said.
Dubbed the Nobel Prize for teaching, the USD 1 million award is the largest prize of its kind set up to recognise one exceptional teacher who has made an outstanding contribution to the profession.
"Raising the bar of respect and celebrating teachers across the world will ultimately play a vital role in helping to recruit and retain the most talented candidates for the profession," he added.
The applications have opened for the Global Teacher Prize 2017 created by UK-based Varkey Foundation. It will be shortlisted down to a top 50 and then a final 10, which will be announced in February 2017.
All 10 finalists will be flown to Dubai for a gala awards ceremony at the Global Education and Skills Forum in March 2017, where the winner will be announced.