The Applied Statistics Division came into being from September 1996, in place of the Applied Statistics, Surveys and Computing Division, following a re-organization of the divisions in the Indian Statistical Institute. The former Computer Science Unit was renamed as the Applied Statistics Unit.

For nearly ten years, the Applied Statistics Unit had been the only unit under the Applied Statistics Division. There are now three other units in the Division: (1) Interdisciplinary Statistical Research Unit (ISRU), Kolkata, (2) Applied and Official Statistics Unit (AOSU), NE- Centre-Tezpur and (3) Applied Statistics Unit (ASU), Chennai.

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