Orphaned as a child, Arun Verma (Anil Kapoor) has dedicated his adult life to looking after orphaned children, in a house where he is unable to afford the day to day expenses and rent. He decides to rent out one of the rooms to a newspaper reporter Seema Soni (Sridevi), who happens to dislike children. International crime lord and terrorist Mogambo (Amrish Puri) takes an interest in this very house to store his weapons and sends his men to force Arun to vacate. Arun and some of the children are beaten-up and threatened with dire consequences if they do not vacate the house. Professor Sinha (Ashok Kumar) shows Arun a device that will makes him invisible and thereby he finds a way to fight to keep the house. Using this, he is turns the tables on Mogambo's men, and calls himself "Mr. India" and becomes popular with the masses and people everywhere rejoice and claim him to be their new saviour. This enrages Mogambo, who spreads his terror by killing hundreds of innocent people and on knowing Mr. India cares for Arun, Seema and the children, Mogambo comes up with a sinister plan to trap Mr. India.
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