The award would be presented on February 10 at the 55th Grammy Awards ceremony in Los Angeles.
92-year-old Shankar, a three-time Grammy winner, died yesterday after undergoing a heart-valve replacement surgery at the Scripps Memorial Hospital in La Jolla, California.
"The decision to honour Ravi was made before his death. He was personally notified by phone by our President/CEO Neil Portnow last week," Grammy spokeswoman Stephanie Schell said after the awards were announced.
"Just last week, I had the honour to inform him that he would receive a 2013 Lifetime Achievement this February. He was deeply touched and so pleased, that he extended a gracious and personal invitation to visit with him at his home," Portnow said.
Shankar was a true pioneer in introducing Indian music to the West, he said, adding the music icon influenced artists across classical, jazz, pop, rock, and world music genres, including the Beatles, John Coltrane, Philip Glass, and his daughters, Norah Jones and Anoushka Shankar.
"We have lost an innovative and exceptional talent and a true ambassador of international music. Our thoughts and sincerest condolences go out to his family, friends and all of those around the world who were inspired by his music and compassionate philanthropy," Portnow said.
Other recipients of this year's lifetime achievement Grammy awards are Glenn Gould, Charlie Haden, Lightnin' Hopkins, Carole King, Patti Page, and the Temptations.
"As one of the world's most renowned sitar players, three-time Grammy winner Ravi Shankar is a true ambassador for international music," said a statement issued by the Academy.
"A humanitarian and philanthropist, in 1971 Shankar, along with George Harrison, organised the Concert for Bangladesh, which paved the way for many other fundraising charity concerts," it said.
"With a performance career spanning more than 80 years, he has influenced a variety of musicians, including the Beatles, John Coltrane, Philip Glass and his daughters, Norah Jones and Anoushka Shankar," it added.
The music legend's most recent Grammy win came in 2000 for Best World Music Album for 'Full Circle – Carnegie Hall 2000'. The first of the Grammy awards came in 1967 for his collaborative album with Yehudi Menuhin, 'West Meets East'.
Released in April, his 'The Living Room Sessions Part 1' is nominated for Best World Music Album for the 55th Annual Grammy Awards. His daughter Anoushka is also nominated in the same category for her album 'Traveller'. Shankar last performed in California on November 4 along with Anoushka.
The Lifetime Achievement Award, which honors performers who have made contributions of outstanding artistic significance in the field of recording, is determined by vote of the Recording Academy's National Board of Trustees.
In the past, the Lifetime Achievement Award has gone to among others icons like Elvis Presley, Frank Sinatra, The Rolling Stones, Paul McCartney, Michael Jackson, Julie Andrews and Glen Campbell.
Did Tina Turner ever receive this award? If not, why not????? Also read this is 50 years celebrating the Supreme's music as well as the Temptations. Why were the Supreme's left out????
Pt Ravi Shankar burst upon the Indian Classical music scene when there no Hindu performers , except in Carnatak music. Not that the performers were true blood Turks or Persians or Arabs; but over 700 years of Muslim rule in India ensured that only converts got royal patronage of our muslim lords. These Indian converts lead to "gharanas' as the knowledge was passed on strictly through the generations, only exceptions were the son-in-laws. Ravi Shankar had to marry Alauddin Khan's daughter to get training. His genius propelled him ahead of all others and he was, as poet Shailendra a throbbing proof that Hindus too can excel in fields that were exclusively in the domain of muslim converts. His genius gave confidence to several generations of Indian classical musicians, because he knew how difficult it was to get the basic knowledge and he freely imparted knowledge to all who could go through his rigorous training.In those pernicious times he inadvertently smashed a centuries old trend.