Nanda, a professor at Harvard Law School, will take charge on September 2, an official statement said here today.
He will be the first director from an international institute to head the premier business school.
"With Nanda's appointment as director, I am sure the institute will grow from strength to strength," Board of Governors and IIM-A Society chairman A M Naik said in a statement.
"An institute alumnus with an impeccable academic record, with decades of experience in leading international schools, he brings the right mix of international experience and familiarity with IIM-A," he said, while announcing Nanda's appointment.
Nanda's appointment comes as part of the IIM-A Board of Governors' efforts to have a global board.
IIM-A's officiating dean Ajay Pandey would continue be interim director of the business school till September 1.