"We are thrilled to welcome Amitabh Bachchan to his new home in Madame Tussauds, " said a statement quoting Janine DiGioacchino, general manager of Madame Tussauds New York.
"Bachchan is a Bollywood film legend and we could think of no better figure to open the new Bollywood Zone, which is an exciting addition to our Times Square attraction."
Five Bollywood dancers, dressed in colourful Lehenga skirts, performed and taught 20 middle school students traditional Indian dance at the "Bollywood Bash", the statement said Friday.
Bachchan's figure is dressed in a traditional black Sherwani suit with a gold and black scarf draped around his neck.
It is the first figure to be part of Madame Tussauds New York's all-new Bollywood Zone.
The brightly-coloured, fully-interactive area includes the "Taj Mahal", videos of authentic Indian dancers and a photo area where visitors can pose as Bollywood stars - all designed to re-create the experience of being on a Bollywood film set with Bachchan.
Over the coming years, Madame Tussauds plans to expand the area to include figures of other prominent Bollywood stars.
Bachchan has starred in more than 150 films and once held a seat in Indian Parliament.