India has followed other countries who have struck down law punishing consensual gay sex.
A Thursday ruling in the country overturns a 2013 judgement that upheld a colonial-era law, known as section 377, under which gay sex is categorised as an "unnatural offence".
The court has now ruled discrimination on the basis of sexual orientation is a fundamental violation of rights.
With the court verdict, the campaigners of the legalization of same sex where seen outside the court cheering and some broke down in tears as the ruling was handed down.
Although public opinion in India's biggest cities has been in favour of scrapping the law, there remains strong opposition among religious groups and in conservative rural communities.
But this ruling, from the top court, is the final say in the matter and represents a huge victory for India's LGBT community.
One activist outside the court says: "I hadn't come out to my parents until now. But today, I guess I have."
Thursday's decision was delivered by a five-judge bench headed by India's outgoing chief justice Dipak Misra and was unanimous.
Reading out the judgement, he said: "Criminalising carnal intercourse is irrational, arbitrary and manifestly unconstitutional.
Meanwhile, with India legalizing same sex relationship, the number of countries that still criminalize the act is now 69 out of the 193 countries recognized by United Nations, 29 out of the 69 countries are in Africa.
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