The department of Instrumentation and Applied Physics pursues research activities in the applied physics field. It's a fairly broad domain. They are :
Applied Photonics: Sensing, microscopy and nanoscale imaging
Materials Research: Material Science and engineering, surface engineering
Integrated systems: Integrated systems and electronics, syatem designs and instrumentations
Energy and Environment: Energy systems, environment and urbas solutions

For someone having a background in mechanical engineering, applied physics is essentially a bridge between theoretical physics and engineering. So, an applied physicist designs a lab equipment and a mechanical engineer designs products like Air conditioner and stuff, just an example about the difference between the two.
These two disciplines merge quite often and work in parallel with each other. So, career wise, it's a very good choice to opt for Applied physics and Instrumentation branch at IISc.

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