Highly crystalline undoped and Ga-doped indium oxide nanorods with square-shaped faceted morphology were fabricated through the vapor-liquid-solid process at moderate temperature. Effects of Ga incorporation on the growth rate, morphology, and crystallinity of the nanostructures were evaluated by scanning electron microscopy, transmission electron microscopy, and X-ray diffraction. Defect structure and waveguiding behavior of the 1-D In2O3 nanostructures have been studied using microRaman and micro photoluminescence spectroscopies. The appearance of several resonant modes superposed over the broad room temperature micro-photoluminescence spectra of the nanostructures demonstrates their waveguiding behaviors. While the pristine or undoped In2O3 nanostructures of 20-150 nm widths revealed Fabry-Perot resonance modes, the Ga-incorporated nanostructures of 20-100 nm width revealed whispering gallery modes due to their smaller widths. The quality factor (Q) of the resonators was estimated to be about 20.86 and 188.79 for the pristine and Ga-incorporated nanostructures, respectively, indicating a huge enhancement due to Ga incorporation. The increment in the Q factor on Ga incorporation in In2O3 nanorods opens up the possibility of their utilization for the development of new optical transmitters and resonators, and fabrication of nanoscopic lasing devices.