Nike is making a big bet on India.

The retailer, which has been struggling to revive its business and regain momentum under CEO Elliott Hill, is hoping the world's most populous country can help it turn the page on its performance.

As it reported its fiscal first-quarter earnings on Oct. 1, the company announced it will create a new global campus in Bengaluru, India, as part of its growth strategy. Hill wrote in a letter to employees that the new facility would be a "long-term investment" to help position Nike for success.

"India is already an important growth market and manufacturing hub for Nike, with strong capabilities and access to talent," Hill wrote.

The new campus is expected to open in the next few years and span corporate roles across the organization, including the namesake Nike brand, Jordan Brand and Converse. Nike plans to discuss its India campus in detail at its investor day next month.

In a statement to CNBC, a Nike spokesperson said expanding into India is a "natural" next step for the company as it looks to grow its global presence.

"As participation in running, basketball, football, fitness and other sports continues to grow across India, we see an opportunity to better serve athletes through stronger local capabilities, consumer insights, and innovation," the spokesperson said.

India will be the world's third-largest retail market by 2030, according to Indian conglomerate Reliance Industries. Its e-commerce market was valued at $159.25 billion in 2026 and is projected to reach $332.94 billion by 2031, according to IBEF, a business advocacy organization created by the Indian government.

Nike has endured a yearslong slump and is trying to right its business under Hill's turnaround plan. Nike also announced this month that it would lay off workers across the company as part of what it has dubbed its Pace strategy, which includes supply chain changes and reorganization of the company's geographic segments. Nike expects the effort to deliver approximately $2.5 billion in savings through fiscal 2031.

Nike's decision to invest further in India as part of its comeback comes as the sportswear company sheds revenue in another critical international market: China. Though its fiscal first-quarter North America revenue came in just above Wall Street expectations, Hill said that performance wasn't enough to offset pressures abroad.

Nike has been particularly struggling in the Greater China market, where its revenue dropped by 26% in its fiscal first quarter. It's part of what experts have said is a broader trend of American companies losing relevance and traction to domestic brands as the once-lucrative market matures.

On a call with analysts earlier this month, Hill said the company was taking "deliberate actions" to strengthen its China business, though he said those effects will take time to materialize. Hill said the company plans to refresh its physical retail, spearhead a digital cleanup and create higher quality experiences for consumers.

The Nike spokesperson told CNBC the company is "deeply committed" to China and sees the region as one of its "most important long-term growth markets," even as Nike expands its presence in India.

"China remains a long-term priority for Nike, while India represents another important opportunity to invest in the future of sport and the next generation of athletes," the spokesperson said.