
Jaishankar will replace Sujatha Singh whose tenure was curtailed with immediate effect. Her two-year tenure was due to end in August 2015.
The surprise announcement was made after a meeting of the Appointments Committee of the Cabinet chaired by Indian Prime Minister Narendra Modi.
Jaishankar has previously served as India's ambassador to China and was key in brokering the nuclear deal with the US which was operationalised during Obama's visit to New Delhi.
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