Iqbal tells the story of Iqbal (Shreyas Talpade), a deaf-mute boy, who dreams of playing cricket for India. However, he is discouraged by his father who thinks that Iqbal's daydreams are a waste of time. Instead, he wants Iqbal to help him tend to the crops and become a farmer like him, which would be a stable profession.

Iqbal's sister, Khadija (Swetha Prasad), however, helps him try out for a nearby academy run by Guruji (Girish Karnad), an influential former India captain, who accepts him for his talent. However, when Iqbal has a fight with a rich boy, Kamal, who is also the star of the academy, he is thrown out by Guruji out of fear of Kamal's father, who bankrolls the academy. Iqbal seeks help from the local drunkard, Mohit (Naseeruddin Shah), who was once a great cricketer and persuades him to be his coach. They are able to train in a nearby field, using Iqbal's buffaloes (named after actual members of the Indian cricket team) as fielders.

Mohit trains Iqbal and gets him a place on the Andhra Pradesh Ranji Trophy team, despite Iqbal not having any previous cricketing experience. Iqbal plays marvellously for the team, which was initially a weak team, and is soon noticed by the press and cricket selectors alike. However, when the final match of the season pits Iqbal against his nemesis, Kamal, Guruji tries to bribe Iqbal to bowl badly so that the national team scouts at the game would select Kamal for the national cricket team. Iqbal succumbs to his offer, out of concern for his father, who is facing financial difficulties and may lose his lands. Luckily, a sports agent is able to offer him a better deal, and Iqbal bowls with his usual fiery pace and wins the match for his team. He also impresses the onlooking national team selector Kapil Dev (in a special guest role), and wins a place in the national team.