The ship was commissioned by Vice Admiral HCS Bisht, AVSM, Flag Officer Commanding in Chief, Eastern Naval Command.
Tihayu is the second ship of the four follow-on Water Jet Fast Attack Craft (FO-WJFAC), built by Garden Reach Shipbuilders and Engineers Ltd (GRSE).
The production of Car Nicobar-class vessels designed and built by GRSE was fast-tracked after the 2008 Mumbai terror attack.
The ship is an improved version of WJFAC, earlier constructed by GRSE.
"Conceived, designed and built indigenously, the ship's commissioning completes addition of another chapter to the nation's 'Make in India' initiative and indigenization efforts in warship design and construction," an official statement said.
Named after Tihayu island (presently known as Katchal island) in the Nicobar group of islands, the 320-tonne INS Tihayu, measuring 49 metres in length, can achieve speeds in excess of 35 knots.
The ship is manned by a team of four officers and 41 sailors. Commander Ajay Kashov has been appointed the commissioning Commanding Officer.
The ship is capable of operating in shallow waters at high speeds and is equipped with enhanced firepower.
Built for extended coastal and offshore surveillance and patrol, the warship is fitted with advanced MTU engines, water-jet propulsion, and the latest communication equipment.
The ship's armament consists of a 30-mm CRN 91 gun manufactured by Ordnance Factory at Medak in Andhra Pradesh. An electronic day-night fire control system, namely Stabilised Optronic Pedestal (SOP) manufactured by Bharat Electronics Ltd (BEL), controls the gun.
The ship is also equipped with two 12.7-mm heavy machine guns and multiple medium machine guns, besides shoulder-launched Igla surface-to-air missiles to combat aerial threats.
The vessels feature improved habitability with fully air-conditioned modular accommodation, on-board reverse osmosis plant for desalination, and a sewage treatment plant.