The Anfield club have joined up with Indian side DSK Shivajians to establish a permanent set-up for young players in Pune.
The LFC International Football Academy DSK, which will open in January, will be a purpose-built residential complex.
It will feature a number of full-size pitches, practice areas, classrooms, changing rooms, a gym, canteen, lecture theatre and medical facilities.
It will support players up to the age of 18 and coaches from Liverpool will work on the project.
Academy director Frank McParland told the club's official website: "At the academy in Liverpool we aim to develop outstanding players and good human beings.
"The results speak for themselves, as last season seven academy players made their first-team debuts.
"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."