A detailed study of monthly average daily diffuse solar radiation for selected Indian locations have been performed using five years (2001-2005) measured data. The data of four prominent locations (Jodhpur, Calcutta, Bombay and Pune), representing varying weather conditions of the entire country, have been taken for the present study. The correlations between the diffuse fraction (H-d/H) and the sunshine fraction (S/S-0) have been developed using regression analysis method for each selected location as well as for all Indian locations, we call it All India Correlation (AIC). The results obtained from present AIC are well compared with the measured data along with the estimates of Liu and Jordan, Gopinathan and lqbal for different locations. The comparisons between various data conclude that AIC can be used to estimate diffuse fraction for any location in India. For further validation and to show the accuracy of present correlations, statistical tests of root mean square error (RMSE), mean bias error (MBE) and mean percentage error (MPE) are also performed. (C) 2009 Elsevier Ltd. All rights reserved.