Initial plans were to invest $3bn but this has now been extended to $5bn to capture further growth opportunities.
Since re-entering the country in 1993, Coca-Cola has invested £2bn to become the leading drinks company in India.
The new investment will fund innovation projects, expansion of the distribution network and an increase in manufacturing capacity.
Muhtar Kent, chairman and CEO of Coca-Cola, said: “Achieving continued sustainable, responsible growth in India is core to achieving our 2020 Vision of doubling system revenues in this decade.”
Coca-Cola currently directly employs more than 25,000 people in India and is estimated to have created indirect employment for more than 150,000 people in related industries through its vast procurement, supply chain and distribution system.