IACS was founded in 1876 by Dr. Mahendra Lal Sircar with the aim of creating an Indian institution where original scientific research could be pursued by Indians. It is regarded as the oldest research institution in India. C.V. Raman conducted the experiments leading to the Raman Effect here, and the institute has been linked with a lineage of eminent Indian scientists including Jagadish Chandra Bose, Meghnad Saha and Satyendra Nath Bose. Today IACS is an autonomous research institute focused on the basic sciences.

IACS represents the beginnings of the modern Indian scientific research tradition, established during colonial rule entirely through Indian initiative and funding. Its 150-year milestone is a reminder of India's long institutional history in fundamental science, and of the Raman Effect — India's first science Nobel — that emerged from it.