The film also won best screenplay and best story at the awards.
On a night of extravagant fashion that included performances from Bollywood icons, Raazi, a thriller about a Kashmiri spy, picked up awards for best picture and best actress for Alia Bhatt.
Ranveer Singh won best actor for his role in Padmaavat, a historical action film that sparked fierce protests among fringe Hindu groups when it began filming.
The IIFA awards, which have previously been held in London, Toronto, Singapore and Bangkok, followed a bumper year for Bollywood.