74-year-old Sirleaf, the first democratically elected women Head of State of any African nation, will be presented with the award at a function at Rashtrapati Bhavan.
The 2011 Nobel Peace prize winner is on a state visit here.
"The Indira Gandhi Prize for Peace, Disarmament and Development was instituted in the name of former Prime Minister Late Indira Gandhi. It celebrates the values that she stood and fought for in the service of our nation and its people," a statement from Rashtrapati Bhavan said.
The winners of the prize were recognised by Nobel Prize committee for their "non-violent struggle for the safety of women and for women's rights to full participation in peace-building work".
The Nobel prize committee had said, "She has contributed to securing peace in Liberia, to promoting economic and social development, and to strengthening the position of women.