"It is with immense pleasure that I welcome Mr Gautam Gambhir as the new Head Coach of the Indian Cricket Team," Jay Shah, secretary of the Board of Control for Cricket in India (BCCI) said in a statement.
Gambhir takes over from batting great Dravid, who finished his stint with the T20 World Cup title in Barbados last month.
Gambhir scored over 10,000 international runs during his 13-year-long international career for India since his ODI debut in 2003.
"Modern-day cricket has evolved rapidly, and Gautam has witnessed this changing landscape up close," Shah added.
Gambhir, a talented left-handed batsman who played a key part in India's ODI World Cup win in 2011, recently coached Kolkata Knight Riders to an IPL crown.
"Having endured the grind and excelled in various roles throughout his career, I am confident that Gautam is the ideal person to steer Indian Cricket forward," Shah added.
"His clear vision for Team India, coupled with his vast experience, positions him perfectly to take on this exciting and most sought-after coaching role."
The usually serious Gambhir later took to commentary and then dabbled in politics, becoming a lawmaker for Prime Minister Narendra Modi's Hindu-nationalist Bharatiya Janata Party (BJP).
He quit politics in March to join IPL's Kolkata, a team he led to two titles in 2012 and 2014.
Gambhir now takes over a team with heightened expectations after their T20 triumph, their fourth World Cup title and first major crown since the 2013 Champions Trophy.
India's white-ball tour of Sri Lanka in late July will be Gambhir's first assignment as coach of the national team.
India also awaits a T20 captain after Rohit Sharma and Virat Kohli retired from the shortest format soon after a thrilling win over South Africa in the World Cup final in Barbados on June 29th.
