From 8 June, restaurants, hotels, shopping centres and places of worship will be allowed to re-open in many areas in the first stage of a three-phase plan.
Weeks later, probably in July, schools and colleges will resume teaching.
But areas with high numbers of Covid-19 cases will remain under tight lockdown.
The plan comes after India registered a new record single-day rise in confirmed infections, with nearly 8,000 cases reported on Saturday.