As per a statement from the home ministry, Ambani will be conferred the award posthumously for his contribution to trade and industry -- the only person chosen for the Padma Vibhushan this year under this category.
The president of India confers the award around March-April.
Both his sons -- overseeing the empire he created -- felt overwhelmed and honoured by the announcement.
"The Padma Vibhushan awarded to Shri Dhirubhai Ambani is an honour to the indomitable spirit of Indian entrepreneurship, innovation and ambition to always do better than the best in the world," said Mukesh Ambani, his older son.
The younger son Anil Ambani, who oversees the Reliance Group, said the honour was a recognition of Indian entrepreneurship.
"I personally, and the entire Reliance family, are truly overwhelmed and deeply humbled at the award of this great national honour, the Padma Vibhushan, for the greatest entrepreneur and wealth creator in the history of India, my beloved father, Shri Dhirubhai Ambani," he said.
"The true legacy of Dhirubhai lies in the inspiration that he continues to provide to millions of young people, who are dreaming impossible dreams, and setting out to achieve their entrepreneurial ambitions."
"In his lifetime, Dhirubhai created and shared more wealth with Indians than anyone before or since."
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