The BJP defeated Congress to return to power in Rajasthan in the recently concluded Assembly polls.
The saffron brigade named Diya Kumari and Prem Chand Bairwa as the deputy chief ministers of Rajasthan.
Vasudev Devnani was named as the Speaker of the assembly.
Former CM Vasundhara Raje, who was the frontrunner for the post, proposed Sharma's name before the MLAs and the central observers, reported Hindustan Times.
In Rajasthan, BJP returned to power by winning 115 seats in the 199-seat assembly.
The BJP also left political observers befuddled after it named Ujjain South MLA Mohan Yadav as the new Chief Minister-elect for Madhya Pradesh.