The award for the Tata Nano has come in the category of transportation, Tata Motors said in a statement.
The Tata Nano's design is such that it offers an incredibly spacious passenger compartment which can comfortably seat four adults.
With a length of just 3.1 metres, width of 1.5 metres and height of 1.6 metres, Nano has the smallest exterior footprint for a car in India but is 21 per cent more spacious than the smallest car available today, it said.
Tata Motors recently announced a special finance scheme by which a customer will get within 48 hours, a loan for the Nano.
The company had also announced a four-year or 60,000 kilometre manufacturing warranty on its small car Nano to woo customers.
Since August this year, the company has already begun open sales of the Nano and it is already freely available in 12 states.
The company will cover the entire country with open sales by March 2011, it said.