India first recognised Estonia on 22 September 1921, when Estonia was admitted into the League of Nations. India re-recognised the Republic of Estonia as a sovereign country after the collapse of the Soviet Union on 9 September 1991 and diplomatic relations were established on 2 December of the same year in Helsinki. The Indian ambassador to Estonia Ms. Vani Rao resides in Helsinki.
The Embassy of the Republic of Estonia was opened in New Delhi in February 2013. The Estonian Ambassador to India is Mr. Riho Kruuv.
In 2011-2012, the Estonian Development Fund in co-operation with the Indian Embassy in Helsinki conducted an India foresight project, the goal of which was to map out possibilities for future potential for economic cooperation in various sectors.