The thermal oxidation process of the indium nitride (InN) nanorods (NRs) was studied. The SEM studies reveal that the cracked and burst mechanism for the formation of indium oxide (In2O3) nanostructures by oxidizing the InN NRs at higher temperatures. XRD results confirm the bcc crystal structure of the as prepared In2O3 nanostructures. Strong and broad photoluminescence spectrum located at the green to red region with maximum intensity at 566 nm along with a weak ultraviolet emission at 338 nm were observed due to oxygen vacancy levels and free excitonic transitions, respectively. The valence band onset energy of 2.1 eV was observed from the XPS valence band spectrum, clearly justifies the alignment of Fermi level to the donor level created due to the presence of oxygen vacancies which were observed in the PL spectrum. The elemental ratio In:O in as prepared In2O3 was found to be 42:58 which is in close agreement with the stoichiometric value of 40:60. A downward shift was observed in the Raman peak positions due to a possible phonon confinement effect in the nanoparticles formed in bursting mechanism. Such single junction devices exhibit promising photovoltaic performance with fill factor and conversion efficiency of 21% and 0.2%, respectively, under concentrated AM1.5 illumination.