The activities and services rendered by this institute for the welfare and all-round development of the Mentally Retarded are well recognized by the Government of India and the Government of Andhra Pradesh by way of sanctioning Grant in - Aid by the Ministry of Social Justice and Empowerment for its special school project, since 1997 – 98, Early Intervention Center (EIC) 2002-03 and Vocational Training Center 2002-03.

The National Institute for the Mentally Handicapped (NIMH), the apex government body on Mental Retardation, has selected this Institute as one of their venues, for conducting various training programs. In fact Dakshinya is functioning under the technical guidance of NIMH, Hyderabad. NIMH has also recognized Dakshnya by way of allotting one pilot project entitled Respite Care Home at Mangalagiri of Guntur area, A.P., to study its feasibility and viability for the formulation of a regular policy.

The National Trust, Central Government Organization (Ministry of Social Justice and Empowerment), New Delhi had entrusted the responsibility of organizing their pilot projects on Prolonged Care and Training of Care Givers to this institution. Dakshinya is the member of the District Level Committee and also recognized its development by according a project of Information Centre. Similarly, a new project entitled Samarth – Center Based Scheme was also implemented.

Andhra Pradesh Association for the Welfare of the Mentally Handicapped, (APAWMR ) Hyderabad, A.P., has chosen Dakshinya Institute as a venue for conducting Regional Special Olympics Meet in 2001.

The Ministry of Finance, Government of India has granted 100% tax exemption for donations made to this institute under section 35 AC and 50% tax exemption under section 80 G of Income Tax Act, 1961.

The Ministry of Home Affairs, Government of India has accorded permission to this institute for receiving the foreign contributions under section 6(10) of the Foreign Contributions Regulations Act, 1976 (Regd. No. 010190208)