"The Indian Regional Office will be instrumental in enhancing NDB"s engagement with borrowers and stakeholders," NDB President Marcos Troyjo said in a statement.
The regional office will be set up in Gujarat state.
NDB has so far approved 21 Indian projects, involving funding of $7.1 billion.
On Thursday, while participating in the seventh annual meeting of NDB"s board of governors by video link, Indian Finance Minister Nirmala Sitharaman said the bank had successfully established itself as a reliable partner for emerging market economies.
The multi-lateral development bank, launched by Brazil, Russia, India, China and South Africa in 2015, expanded membership last year to include Bangladesh, the United Arab Emirates, Egypt and Uruguay.
The Shanghai-headquartered lender has signed off on more than 80 projects in the five original member countries. The value of the projects exceeds $30 billion and they are in sectors from transport, water and sanitation to clean energy and digital and social infrastructure.
