The application of external pressure on a heterostructure produces changes in the lattice parameter and symmetry of the material. These in turn produce significant changes in the electronic bandstructure. Due to the application of external pressure energy gaps are altered. This paper reports the energy bandstructure, wavefunctions and optical gain in type-In-Al0.45 Ga0.55 As/GaAs0.84P0.16 / p-Al0.45 Ga0.55 As nano-heterostructures under uniaxial strain (-1 to +1 GPa) along [110] directions in the red visible region. Numerical calculations of the photonic energy and optical gain of TE and TM modes in GaAsP/AlGaAs laser diode structure have been carried out for various uniaxial strain at temperature 300 K. The band structure was calculated using 6×6 Luttinger-Kohn Hamiltonian to determine sub-band dispersion and corresponding wavefunctions. The Heterostructure is observed to operate in the energy range 1.62 to 1.78 eV (696 to 765 nm).