Shekhar, who opposed liberalization during his tenure as prime minister, died at New Delhi's Apollo Hospital after three months of cancer treatment, The Press Trust of India reported.
The socialist had gained a reputation throughout his nation for his staunch principles and his controversial creation of a socialist rebel organization in 1990.
Shekhar also managed to create a weak minority government during that same time period, thanks in part to congressional support.
Members of the Indian Congress and the Bharatiya Janata Party expressed sorrow Sunday at the loss of the former prime minister.
The Press Trust of India said Prime Minister Manmohan Singh also remembered Shekhar Sunday, labeling him a committed politician who fought for his nation and its people.