The 21-year-old, who landed with her coach Pullela Gopichand, was received at Rajiv Gandhi International Airport by her parents P V Ramana and P Vijaya, some Telangana and Andhra Pradesh Ministers, amidst cheers from crowds.
A beaming Sindhu, displaying her silver medal and waving to the crowds, was then taken in a open-top-motorcade along with Gopichand to Gachibowli Stadium, where the government felicitated her along with her coach in the presence of a capacity crowd.
School children held banners hailing the badminton star, who caught the imagination of the country with her superb run at Rio. They raised slogans such as 'P V Sindhu Pride of India', and many of them also showered flower petals on the motorcade.
A celebratory mood prevailed at the stadium, where an enthusiastic crowd, mostly school and college students, welcomed her amid beating of drums by traditional 'Dappu' dance artistes.
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Gopichand thanked the Telangana government for its
support and for announcing rewards.
Praising the two Indian medal winners at Rio, he said, "Hats off to the women (Sindhu and grappler Sakshi Malik) for actually saving the respect of India in front of the whole world."
"It's huge support from the government and also for financial rewards. It is unprecedented. I am sure this will inspire and help in preparing lot of champions and lot more sportspersons," Gopichand said.
Rama Rao told Sindhu's parents that they should be proud of her as she has now become "daughter of India", and announced that the government would come out with a new sports policy after holding consultations with Gopichand and other Arjun awardees.
Speakers at the event praised the efforts and sacrifices made by Sindhu's coach and her parents for her success at the international level.
The Telangana government had earlier announced Rs five crore cash reward for the 21-year-old, a 1,000 square yard housing site near the Pullela Gopichand Badminton Academy in Gachibowli and suitable government job, if she is willing, and a cash prize of Rs one crore for Gopichand.