The hotel is part of a major new development in the Lower Parel district of the city and is expected to open in 2017, it said.
When complete the property will consist of 470 rooms, suites and serviced apartments, a wide range of restaurants and bars, extensive conference, wedding, banqueting and meeting facilities and a Talise spa, the company said.
"This agreement represents the first phase of Jumeirah Group's expansion into India. The company is currently in advanced negotiations on potential projects for hotels and resorts in other key destinations in the country," the statement said.
Jumeirah Group currently operates 20 luxury hotels and serviced apartments, including 10 in the UAE, seven in Europe, two in the Maldives and one in China. A further 15 hotels are now under development, it added.
President and Group CEO of Jumeirah Group Gerald Lawless said: "The demand for five-star hotels in the Indian market has been robust and we are delighted to have initiated the first phase of our expansion into India with this landmark project in Mumbai.
"We look forward to building on this success by bringing our promise of Jumeirah Stay Different to other destinations in the country."