The centre in the city's Belgrave area was officially opened by Indian Consul General in Birmingham, V S Ramalingam, and Leicester's Indian-origin MP Keith Vaz.
"I cannot believe that after so many years of campaigning, it has finally become a reality. It is a wonderful gift to Leicester," the Labour MP and chair of the House of Commons Home Affairs Select Committee said.
"With the Home Office biometric centre in the city centre and now a new Indian visa centre, Leicester is the hub of the East Midlands," Vaz said as he applied for an Indian visa at the centre yesterday.
According to research done earlier this year, Leicester emerged as one of the few cities in the UK where white Britons are in a minority. Indian-origin families of Gujarati descent are the most common ethnic minority community in the region.
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Sital Singh Gill, general secretary of the Indian Workers Association in Leicestershire, welcomed the new centre, saying it will save this group from travelling to Birmingham or London for a visa to visit relatives in India.
"It will also be of great benefit for all of those in nearby cities such as Nottingham, Derby and Peterborough.