One of the main objective of this thesis is to adapt and configure a fully non-linear, primitive equation type, sigma co-ordinate 3-dimensional circulation model for the entire Indian Ocean area which can be run on diagnostic, semi-diagnostic and prognostic modes. Such a model could identify both the local and remote forcing of the Indian Ocean circulation. The other objectives of the thesis are the following: (i) To study the steady state 3-dimensional circulation of Indian Ocean based on semi-diagnostic calculation (ii) To simulate the climatic 3-dimensional circulation of Indian Ocean using the state of art sigma co-ordinate model. (iii) To study the sensitivity of Indian Ocean circulation to different wind fields (iv) To compare the model results with available information on currents and hydrography of Indian Ocean and to bring out the relative roles of local and remote forcing on the general circulation of Indian Ocean.