British high commissioner to India, Sir James Bevan conducted the honours for Ratan Tata, Chairman Emeritus of Tata Sons.
The high commissioner presented Tata with the Knight Grand Cross of the Order of the British Empire (GBE) on behalf of Her Majesty Queen Elizabeth II.
UK said recently "Tata has been awarded an honorary GBE, one of the highest civilian honours conferred by the UK, in recognition of his services to UK/India relations, inward investment to the UK and philanthropy".
Speaking after the ceremony, Sir James said "Ratan Tata's leadership, vision and integrity will remain the gold standard for generations of aspirational British and Indian business people. His contribution to the deep ties that exist between the UK and India has been invaluable".
Queen Elizabeth II conferred on Tata the honorary award of Knight Commander of the Order of the British Empire (KBE) in 2009.
Tata is a member of the UK-India CEO Forum and the British Prime Minister's Business Advisory Group. As Chairman of Tata Sons, UK benefited from significant inward investment from Tata companies. Tata are now the largest manufacturing employer in the UK.
The KBE is one of the highest honours given by the British queen to civilians.
It commonly appears on the Diplomatic Service and Overseas list but can also be given to Britons based abroad or in an honorary capacity to foreign nationals.
Tata successfully guided one of India's oldest business empires through rough seas.
The former chairman of Tata group - under whose leadership the group's revenues grew to around Rs 475,721 crore in 2011-12 from Rs 10,000 crore in 1991 retired on Dec 2012 after a 50-year run at the helm. Cyrus Mistry took over as the new chairman.
The Tata group is highly popular in UK. Iconic British car brands Jaguar and Land Rover became part of the Tata group in 2008. The company employs over 16,000 people at its manufacturing facilities in the UK, including 3,500 engineers at its two product development centres.
Around 78% of Land Rovers are exported to 169 countries, while Jaguar exports 70% of its products to 63 countries around the world.
Tata Limited was established in London in 1907 to be Tata group's representative in Europe
Tata companies have operations and a 60,000-strong workforce spread across Europe
Tata's association with UK academia also dates back to the establishment of the Sir Ratan Tata Department at the London School of Economics.
Subsequently called the Department of Social Sciences, it was set up to research the causes of poverty. Its first lecturer, Clement Attlee, went on to become the British prime minister who gave India its independence and also set up the British National Health Service.
Tata has maintained close links with the London School of Economics through a research collaboration with the Tata Institute of Social Sciences.
In 1920, the Department of Engineering at the University of Cambridge moved to its current Trumpington Street site thanks to a donation from Sir Dorabji Tata, an alumnus of the institution.
Tata International Social Entrepreneurship Scheme (ISES) began in 2008 as a two-month social internship programme for international students from the University of California, Berkeley, USA, and the University of Cambridge, UK.
In 2010, the London School of Economics joined hands with Tata ISES to enable its students to be part of the programme. The students are selected for an eight-week summer internship at different Tata community initiatives in India.
Tata said "I am deeply touched and feel greatly honoured to receive the recognition so graciously bestowed on me by Her Majesty. It has been a privilege to endeavour to have our enterprises contribute positively to the growth and standing of the United Kingdom. I am also deeply appreciative of the support we have always received personally from David Cameron and his government, through good and bad times. This support and faith have been of immeasurable value throughout".
He added "But none of what we have been able to achieve could ever have been possible without the unflinching trust, commitment and dedication of the people within our enterprises in the UK. I admittedly have been most closely associated with Jaguar Land Rover (JLR) where I have witnessed at close quarters the tremendous leadership and the impressive spirit of the workforce working together to achieve the goal we have set - 'to restore these two venerable English brands to their earlier glory'. To all these wonderful people I owe my most grateful thanks".