The 25-year-old topped his heats by clocking 28.25s before holding on to the third spot in the final race with a timing of 28.26s.
The gold medal was bagged by Kazakhstan's Dmitriy Balandin, who bettered the Games record of 27.80s with a timing of 27.78s.
The silver was clinched by Japan's Yasuhiro Koseki, who clocked 27.89s.
Sejwal's medal came as a huge respite for the Indian swimming team, which had been struggling to even make the finals of various events till now.
Before Khade, Khajan Singh had won a medal in the Asiad way back in 1986. He had clinched a silver in the 200m butterfly event.