In2-xNixO3 (x = 0.05, 0.10 and 0.15) nanoparticles were successfully synthesized by solvothermal method by the thermal decomposition of oxalate precursor at 450 degrees C for the first time. X-ray diffraction studies showed the formation of highly crystalline and monophasic cubic structure of In2O3 which is attributed to the formation of solid solution. These nanoparticles show good optical transmittance in the visible region. Optical measurements showed an energy band gap which decreases with increasing Ni concentration. The grain size decreases from 15 nm to 8 nm and surface area increases from 90 to 254 m(2) g(-1) on increasing the Ni concentration. High dielectric constant and dielectric loss has been obtained which indicates the conducting nature of these solid solutions. Magnetic measurements showed that the samples are strong paramagnetic in nature with very weak antiferromagnetic interactions. No evidence of ferromagnetism is observed for these solid solutions at room temperature. (C) 2013 Elsevier Ltd. All rights reserved.