The 20-year-old fast bowler from Chandigarh, the son of a bus driver, emerged as the winner of the programme which attracted an estimated television audience of 60 million.
"Sukhvir will enjoy all the privileges of a professional cricketer with us," said Leicestershire coach Tim Boon.
"He will go through all the fitness testing and screening as well as practicing with the squad. We hope to play him in some second team games.
"We will also be looking to integrate him into the local community, which is a key part of the strategy going forward in terms of developing closer links and raising our profile on the sub-continent."
Leicestershire, who have worked in partnership with Investors in Cricket, the backers of the television show, recently returned from a pre-season tour of India and Sri Lanka when they played a special 20/20 match against the Cricket Star Finalists XI in Mumbai, a side which featured Singh.
On that tour, the English side also signed up Indian left arm seamer R P Singh as their second overseas player to accompany Pakistan all-rounder Mansoor Amjad for the 2007 season.
"Sukhvir comes from a humble background but he impressed everyone with his desire to succeed," added Boon.
"He has an exceptional attitude, he is very fit and very focussed on making the grade."