The death occurred in Hyderabad, state capital of Andhra Pradesh on Sunday morning, the IANS news agency reported.
The student sustained 80 percent burns when he poured kerosene and set himself ablaze during protests at the city’s Osmania University on Saturday.
The university remained tense through Saturday as mobs of students clashed with policemen, is the center of the movement campaigning for the new state.
Andhra Pradesh has seen weeks of violent protests by groups for and against the separation of the Telangana region from the rest of the state of Andhra Pradesh.
Two students killed themselves in January in support of the creation of a new state.
In December the government appeared to give in to weeks of pro-independence protests by students and the regional Telangana Rashtriya Samiti party, agreeing to form a Telangana state.
New Delhi quickly put the project on hold, however, as violent protests broke out in the other parts of Andhra Pradesh, and formed a committee to evaluate the proposal more carefully and conduct consultations.
Campaigners have claimed that Telangana, made up of the 10 northern districts of Andhra Pradesh, suffers economically from supporting the state’s other two regions.
The area of the would-be separate state includes the current state capital Hyderabad, one of India’s major information technology and pharmaceutical hubs.