His son Shashin Devsare said the author, who had been battling a prolonged illness, died at a hospital in Indirapuram in Ghaziabad.
Born on March 9, 1938 in Nagod in Madhya Pradesh, Devsare was one of the foremost names in the field of Hindi literature and a recipient of the 2011 Sahitya Akademi Bala Sahitya Puraskar for lifetime contribution to children's literature.
Devsare, who authored over 300 books, also received other awards and honours, including Bal Sahityakar Samman, Bal Sahitya Samman of Uttar Pradesh Hindi Sansthan, Kriti Samman (2001) and Sahityakar Samman (2004) of the Hindi Akademi.
Known for experimentation in his writings, Devsare had launched a serious debate by questioning the relevance of the tales of kings and queens and fairies in the modern context.
He encouraged creativity in children's literature in Indian languages and tried to fill the vacuum in science fiction and one-act plays for children.
"Devsare was instrumental in compiling 'Hindi Bal Sahitya Ek Rachna', a seminal book on the history of children's literature, a milestone in the history of publishing," said an official of the Sahitya Akademi.
"Devsare used to work for the All India Radio for nearly 22 years before he took voluntary retirement and headed Parag magazine. He also used to write scripts for serials, telefilms and programmes based on science and technology. He also used to write poems," said the Sahitya Akademi official.
"He has also translated a number of international works for children including those by Hans Christian Andersen and the Grimm Brothers," said the official.
"My father who has immortalised with his prolific and vast range of work in literature and particularly Indian children's Literature died on Children's Day," said Shashin.
Devsare is survived by his wife, two sons, a daughter and five grandchildren.