The five-year contract, which starts on January 1, 2006, also gives the US sports goods giant the rights to sell the BCCI's official merchandise at its retail outlets across the country.
Nike's bid for 1.97 billion rupees (43 million dollars) topped Reebok's 1.19 billion rupees and Adidas's bid of 1.28 billion rupees, BCCI vice-president Lalit Modi said on Friday.
"The aim was to maximise the gains from the game for the benefit of the game," Modi said.
"The BCCI is looking at exploring new sources of revenue and would soon open itself to product merchandising, ground sponsorship and other licensing as part of its strategy to market the game."
Nike's coup follows the BCCI's tie-up this week with Sahara India group to be the official sponsor of the Indian team for four years at a whopping 70 million dollars.
"We look forward to working with the Indian team and to creating the best performance products for the players," said Peter Bratschi, Nike's sports marketing director for Asia-Pacific.
India, placed second behind Australia in the International Cricket Council's official Test rankings, begin the new year with a high-profile tour of Pakistan for three Tests and five One-day internationals.
India is also scheduled to play a home series against England in February-March before touring the West Indies in May.