Her fellow shooter Avani Lekhara was presented with the BBC ISWOTY Para-sportswoman of the Year award.
The 23-year-old is the first Indian woman to win three Paralympic medals, with gold in Paris following a gold and bronze at Tokyo 2020.
Indian President Droupadi Murmu said: “I appreciate the entire team of the BBC for the praiseworthy initiative of organising BBC Indian Sportswoman of the Year.
“The extraordinary athletes who have been recognised through this initiative have not only excelled in their sports but have also inspired young women to pursue their dreams fearlessly.”
BBC director general Tim Davie, who hosted the awards ceremony, said: “Manu Bhaker’s historic Olympic performance is a defining moment for Indian sports. Her journey from a promising young shooter to a record-breaking Olympian inspires athletes across the country and beyond.
“We are also honoured to celebrate Avani Lekhara as the Para-sportswoman of the Year. Her resilience and record-breaking success continue to pave the way for greater inclusion and excellence in Para-sports.
“The BBC’s commitment to audiences in India makes our relationship here a special one, and we are proud to celebrate the achievements of India’s incredible sportswomen.”