President Pranab Mukherjee laid the foundation stone of the permanent campus of Nalanda University at Pilkhi village in Rajgir, Bihar.
He also conferred the chancellors gold medal to two students at the first convocation of the university.
Mr Mukherjee handed over Post graduate degrees to 12 students of the first batch. 155 students are studying in the university.
The Nalanda University came into being on November 25, 2010 by a special Act of the Parliament and has been designated as an institution of national importance.
The University is being supported by all the Members of the East Asia Summit and Intergovernmental Memorandums of University to that effect have been signed by 17 countries.