About 20,000 fans cheered at the Bangalore Palace for over two hours with the 56-year-old star playing three encores and singing another 10 songs from his most popular albums.
Hailing the boisterous audience for their foot tapping and swinging to his beat, Knopfler declared he was delighted to be in what he termed India's most cosmopolitan city.
"I love you all. I thank you all for this terrific response. Swing your way to the heart with this music," Knopfler said, drawing resounding applause.
Accompanying Knopfler on the 3,000-foot stage were Glenn Worf (bass), Chad Cromwell (drums), Richard Bennett (guitar), Guy Fletcher (piano) and Matt Rollings (piano, organ and accordion).
For the first time in a Indian concert, 'flying lights' were used for creating special effects.