The company also plans to upgrade its manufacturing capabilities in India so it can make equipment for mobile phone networks, such as telecommunication switches and mobile base stations, Ericsson's chief executive, Carl-Henric Svanberg, said in statement.
The research center is to be located in the southern Indian city of Madras, said the statement, released Monday.
Ericsson didn't specify where it planned to set up the services center, which is intended to help manage the phone and data networks of the company's customers worldwide.
"We see immense potential in this region and we are committed to partner with India in its growth," Svanberg said.
The statement did not say how much money Ericsson would invest for the new projects or how many jobs would be created.
Ericsson already employs 1,500 people in India and has invested US$100 million (Ђ83.72 million) in the country, mainly for manufacturing activities.
India is one of the fastest growing mobile phone markets in the world, with around three million new connections sold each month. The country has 65 million mobile phone users. I.L.