The factory in Nellor will produce 250 blades a year for its G114 2MW turbine, employing 400 staff.
The factory is expected to be opened in September 2016, said the Spanish based manufacturer. Gamesa received its first orders from India for the G114 in February.
The new factory will be Gamesa's third manufacturing facility in the subcontinent. It already has a blade factory in Gujarat and a nacelle factory in Tamil Nadu. The nacelle factory, opened in 2013, was expanded in 2014 to accommodate manufacturing processes for the G114 turbine.
There is also a repair centre in Chennai, in east India.
India is an increasingly important market for Gamesa. According to Make Consulting, Gamesa lifted its 2015 market share in India to 34% - up from 25% in 2014.
In its Q1 financial results, India comprised 26% of the manufacturer's total sales by MW, just 1% less than all of its Latin American sales.