The single-entry visa, to be issued at Delhi, Mumbai, Chennai and Kolkata airports, will ne valid for a month.
"The decision was taken after due discussion with the ministries of External Affairs and Home. A formal announcement in this regard will be made soon," an official said.
It is expected that this facility will attract more Buddhist pilgrims.
Earlier, Singapore, New Zealand, Japan, Finland and Luxembourg were extended the visa on arrival facility.
The International Finance Corporation and the Ministry of Tourism have inked an agreement under which the IFC has been given the responsibility of developing the Buddhist circuit in India.