The 39-year-old Dravid, a former Indian captain, said he would leave the stage with wonderful memories and had no regrets to bring down the curtains on his career spanning close to 16 years.
Dravid thus becomes the first of the three ageing greats of Indian cricket, besides Sachin Tendulkar and VVS Laxman, to retire in the aftermath of India`s disastrous Test tour of Australia.
"I would like to announce retirement from international and domestic first-class cricket. It is 16 years since I played my first Test match for India and today I feel it is an time to move on. Once I was like every other boy in India, with a dream of playing for my country. Yet I could never have imagined a journey so long and so fulfilling," Dravid said at a crowded press conference here.
"I felt it was the right time for me to move on, for a next generation of cricketers to play and make a new history. A lot of these decisions just come to you in different ways. I just felt the time was right. I needed to move on," said Dravid.
Dravid had already announced his retirement from ODI cricket in England last year after been surprisingly recalled in the team due to his stupendous performance during the Test series against England in which he scored three centuries.
Dravid ended his Test career with 13,288 runs - behind only Tendulkar (15,470 in 188 Tests) - in 164 matches, with 36 hundreds and 63 half centuries at an average of 52.31, the 270 against Pakistan being his highest score.
In the one-day cricket which he played from April 1996 to September 2011, he scored 10,889 runs from 344 ODIs with 12 centuries and 83 half centuries at an average of 39.16.
Nicknamed `The Wall` for his dour defence, the always thoughtful-looking Dravid will lead the Jaipur-based Rajasthan Royals side in the fifth edition of the Indian Premier League.
The Karnataka batsman had a disastrous tour of Australia where he scored only 194 runs in eight innings at an average of 24.25. Even more disappointing was that Dravid, known for his solid technique, was bowled in six out of eight innings.
But, Dravid denied that his poor form in Australia had been a factor in his retirement decision. "I would like to believe irrespective of how the Australian series had gone, I would have assessed a lot of things and come to the same conclusion. I dont think I based this decision on on series, it`s a culmination of a lot of things. These decisions are based on a lot of things," said Dravid who was flanked by BCCI President N Srinivasan and former captain Anil Kumble.
He thanked the coaches at the junior level for inculcating a powerful love of the game and international coaches for finetuning his skills. "No dream is ever chased alone. As I look back, I have many people to thank for teaching me and believing in me. My junior coaches in Bangalore and at various junior national camps inculcated in me a powerful love of the game which has always stayed with me," said Dravid.
"My coaches at the international level have added to my craft and helped shape my personality. The physios and trainers worked hard to keep me fit -- not an easy job -- and allowed me to play late into my 30s."
He said he would leave the stage with wonderful memories he had with his team-mates who are legends of the game. "I was lucky in my early years to play for Karnataka team which was trying to forge itself into a strong side and they were years of fun and learning," he said.
"I was fortunate to be part of a wonderful era when India played some of its finest cricket at home and abroad. Many of my teammates have become legends, not just in India but in the wider cricketing world. I admired them, learnt from them and I leave the game with wonderful memories and strong friendships. It is a great gift to have."
Characteristic of his simple but dignified approach to his cricket, Dravid said he had tried to uphold the spirit of the game. "My approach to cricket has been reasonably simple: it was about giving everything to the team, it was about playing with dignity and it was about upholding the spirit of the game. I hope I have done some of that. I have failed at times, but I have never stopped trying. It is why I leave with sadness but also with pride."
Under his captaincy between October 2005 and September 2007, India won Test series in the West Indies as well as England but had a disastrous World Cup in 2007 when they were knocked out in the first round of the tournament. He captained India in 25 Tests and 79 ODIs.
Dravid`s captaincy coincided with Greg Chappell`s controversial tenure as India coach, but that did not affect his performance with the bat, as he garnered 1736 runs at 44.51.
Never a natural athlete, Dravid`s immense levels of concentration also came in handy as he also holds the world record of highest Test catches - 210 - mostly at the slip cordon. He overtook Mark Waugh to become the most successful slip catcher in history. In addition to this, he has 196 catches in ODIs.
Asked how long he took to reach his decision to retire, Dravid said, "For a year now after each and every series I have assessed. When I came back from Australia I wanted to take the emotion out of it and look at it dispassionately. I have spoken to Sachin and to my team-mates and all of them were supportive.
"It was an honour and a privilege to play with the galaxy of cricketers I played with ... fortunate to play in an era which was pretty successful in Indian cricket, for me to be sharing a dressing room with them was an honour."