Mr Jaishankar who was foreign secretary from January 2015 to January 2018.
"In his new role, he will be responsible for the Tata group's global corporate affairs and international strategy development and Tata Sons' international offices will report to him," it added.
Mr Jaishankar has been given a waiver from the "cooling-off period" for bureaucrats after retirement. He had written to Prime Minister Narendra Modi requesting a waiver of the "cooling-off period" after he was offered a position by Tata group.
Officers of "Group A" central civil services and posts and all-India services have to get clearance from the government if they take up a salaried job within one year of retirement.
Tata Sons said Mr Jaishankar will work with Tata companies to help them strengthen their business presence and positioning in their respective geographies globally.
Mr Jaishankar joined the Indian Foreign Service in 1977 and held key roles during his career, including stints as high commissioner to Singapore, Ambassador to China and the US.
He played a key role in negotiating the Indo-US civilian nuclear agreement, the statement said.
A graduate of St Stephen's College, Mr Jaishankar is an MA in Political Science and an MPhil and PhD in International Relations from Jawaharlal Nehru University (JNU).
With inputs from PTI
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