The minister was conferred with the honour at an annual dinner held at the House of Lords in London on Thursday, Nov 26.
NRI businessman Lord Iltaf Sheikh who presented Kaur with the award said, "You are a worthy recipient of this award for your outstanding contribution to Punjab."
The ceremony saw presence of distinguished guests including Lord Navnit Dholakia, deputy leader of the Liberal Democrats in the House of Lords.
Accepting the award Kaur said that receiving this honour surpassed any other achievement she had achieved in the past.
"It is a wonderful feeling to be here in London at a time when the relationship between our countries is at its very best," she said.