The project will see Liverpool become the first top-flight club to embark on such a development in the country.
The academy will deliver full-time training at the base in Pune and the facility is set to be officially unveiled as early as January in the new year.
The club has a proud tradition of graduating academy players into the first-team, with current captain Steven Gerrard progressing through the ranks.
And the Reds' academy director Frank McParland is proud of the work his team do:
"The results speak for themselves," McParland is quoted as saying. "Last season seven academy players made their first-team debuts.
"At the academy in Liverpool we aim to develop outstanding players and good human beings.
"Education and community work is key to the development of our young players and we look forward to taking our knowledge and experience of developing young footballers to India."
After captaining England to the World Cup, Liverpool youth-product Gerrard will now turn attention back to his club as Liverpool look to sustain their good early-season form.
The Reds face a tough trip to the North-East as they take on Alan Pardew's Newcastle United.
A win against the Geordies could see Liverpool oust Arsenal at the top of the table, although the Gunners will be expecting a positive result at home to Norwich City.
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