It is thought that Sister Bertilla Capra has been working with lepers for more than 40 years in the country, according to AsiaNews.
Since 1981 she has been the director of a dermatological centre for the care and rehabilitation of leprosy sufferers in Mumbai.
The government has stated that Sister Bertilla Capra, from the Missionaries of the Immaculate, is not being deported.
However it claims that the rules have changed and her visa had expired and not been renewed.
It said that the nun must apply for a different type of visa in order to remain in India, or she will have to return to Italy.
The 77-year-old is being asked to leave India immediately.
Sister Tessie, who works with Sister Bertilla, told AsiaNews that: "Until 2010 her visa was renewed every five years, then annually.
"This time, last November, her request for renewal was refused.
"She asked for at least a temporary visa for three months to find a solution, but was denied this."