The name of Ravishankar, the Varanasi-born most known contemporary Indian musician, was cleared unanimously by a jury under the chairmanship of Prime Minister Manmohan Singh.
On the recommendation of the jury, the award has been renamed as 'Tagore Award for Cultural Harmony', Finance Minister Pranab Mukherjee said while announcing Ravishankar's name for the award.
The award would be presented by the President in a special ceremony, he said.
Singh had last year announced establishment of the Tagore Award for promoting values of universal brotherhood.
The award comprises Rs one crore, a citation in a scroll, a plaque and an exquisite traditional handicraft or handloom item.