IIHP was first formalized in the name of All India Institute of Homoeopaths in 1944 by a team of dedicated stalwarts such as Dr. M. Gururaju, Dr. A. N. Mukharjee, Dr. Diwan Jaichand, Dr. Daya Shankar, Dr. J. P. Srivasthava, Dr. S. P. Asthana and Dr. K. G. Saxena as the Founder Secretary General.
Padmasri Dr. K. G. Saxena was chief instrumental in the recognition and development of Homoeopathy in India. He burnt his life as a candle to shine forth the bright light to Homoeopathy and qualified Homoeopathic brethren in particular, by sacrificing all his time, money and energy. We owe him a great deal for having initiated the institute, for having made the government to form the famous joint parliamentary committee in 1949 with scientists from different disciplines. This committee in turn gave a favorable report and the government finally recognized the system of Homoeopathy as a scientific one. His other achievements in the name of the Institute include formation of Ad-hoc committee, family planning committee etc. initiation of Central Council of Homoeopathy, Central Council for Research in Homoeopathy, National Institute of Homoeopathy, Drug standardization Unit at Gaziabad, and institution of various CGHS Homoeopathic Dispensaries. In turn various state governments recognized Homoeopathy and started Homoeopathic Medical Colleges and Hospital as well.