In Mumbai, his friends, neighbours and others hailed the verdict with fireworks outside the Jadhav home at Powai, which the family had left since his arrest in Pakistan two months ago.
Earlier, people in the housing complex were watching the TV sets to witness the proceedings in The Netherlands court and raised cries of joy as the verdict was announced.
Similar revelry was witnessed in the Muslim-dominated Nagpada areas of south Mumbai.
Rehmani Group President Asif Sardar, Zakaria Masjid Chairman Irshad Lakdawala and Muslim Yuva Manch committee member Kashib Shah hailed the ruling.
The next step would be to welcome Jadhav to India after his release, some of them said.
In Satara, people assembled in public places and raised slogans of 'Bharat Mata Ki Jai', 'Vande Mataram' and 'Kulbhushan Jadhav Zindabad' and celebrated with sweets.
Earlier, a group of people in Thakur Complex, Kandivali East, gathered at a Shiva temple and offered special prayers seeking a favourable verdict for Jadhav.
Prayers were also offered in temples in Andheri, Powai and Satara.