The foundation stone of the institute was set on 4 March 1984 by the President of India, Giani Zail Singh. The institute started operating in 1986 with six base modules. Six diploma modules started in 1988 and by 1990 seven degree modules were added. The institute was funded by NEC until, in April 1994, it came directly under the full funding and control of the Ministry of Human Resource Development (MHRD). In May 2005 it was granted deemed university status. NERIST gained approval for the postgraduate programme from AICTE and MHRD in 1996, and the latter was implemented by 2006.