Birla, 56, was elected after Prime Minister Narendra Modi proposed his name on Day 3 of the Budget session.
All members of the BJP-led National Democratic Alliance (NDA) as well the Congress and the Trinamool Congress supported the proposal to pick Birla as the Speaker.
Birla, a two-time MP from Kota and a three-time MLA, was personally escorted to the Speaker's chair by the Prime Minister after the formalities were over.
"It is a matter of pride that Om Birla has been elected the Speaker of the Lok Sabha. Public service has been the focal point of the politics of Om Birla. He is a compassionate leader who will preside over the House," Modi said.
Modi told Parliament that Birla's "unanimous" election was a "matter of great pride".
"I personally remember working with Birlaji for a long time. He represents Kota, a place that is a mini India, a land associated with education and learning. He has been in public life for many years. He began as a student leader and has been serving the society since then without a break."
A total of 13 motions were moved in support of Birla.
Adhir Ranjan Chowdhury, named the Leader of the Congress in the Lok Sabha on Tuesday, urged Birla that the House should abide by democratic practices.
"We believe in discussion, dissent and decision. And we expect our right to be respected. In parliamentary discussions, we must avoid the ordinance route because it is against democratic norms," the Congress leader said.
( With inputs from IANS )