The 78-year-old was awarded the honour at an awards function held in London on Thursday, PTI reports.
"Now I feel I am a recognised singer in the world. I thank my fans and hope they will continue to love me," Bhosle said.
The legendary Bollywood playback singer has recorded up to 11,000 solo, duet and chorus-backed songs in over 20 Indian languages since 1947.
Bhosle thanked music researcher Vishwas Nerurkar for helping her claim the coveted title.
The singer will soon make her acting debut with Maaee. Directed by Mahesh Kodiyal, the film features Padmini Kolhapure as Bhosle's daughter.
"I wish they will appreciate my acting skills as much as they enjoyed my songs," Bhosle said.