Rajesh Shah, one of the shop's co-owners, told the BBC there would be a new name "tomorrow or the day after".
Jews in the city of Ahmedabad, where the shop opened last month, said using the Nazi dictator's name was offensive. Israeli diplomats also raised the issue with the Gujarat state government.
The owners said they did not know who Adolf Hitler was when the shop opened.
Mr Shah told the BBC: "Yes we are planning to change the name. There has been too much political pressure from the government."
He said officials had promised compensation for the rebranding of the store, which sells men's clothing, although he said they had provided nothing in writing.
His co-owner, Manish Chandani, told AFP news agency they had never intended to glorify Hitler.
"I was not aware of Hitler being responsible for the killings of six million people before the shop's inauguration. This time I will choose a non-controversial name."
Mr Chandani says the shop's name was a tribute to his grandfather who was nicknamed Hitler because he was "very strict".
Others saw the name as a marketing gimmick in a country where the former German leader attracts unusual interest in some sections of society.
"I am happy that the store owner decided to change the name. I guess he realised that it was not the right thing to do," Orna Sagiv, Israeli consul general in Mumbai, told AFP.

EDF Energy has made the deals despite the UK government reviewing the plans and not yet giving final approval for the nuclear plant.
The French firm said it was "highly positive" the plant would be built.
Those opposed to the nuclear build said EDF was attempting to "twist" the arm of the government.
More on the Hinkley contracts and other news from the West
Earlier this month EDF agreed to invest in the first new UK nuclear plant in 20 years, and was poised to exchange contracts with the government.
But hours after the decision was announced by the French energy firm, the government said it would review the plans and make its decision in the autumn.
Roy Pumfrey, of the campaign group Stop Hinkley, said: "They're trying to bounce the British government into not having a pause, but perhaps even having the Prime Minister returning from holiday in Switzerland to say, 'All right, we'll give in, we'll go ahead with it'.
"I cannot believe the British government is going to have its arm twisted by them. "Whilst [the supply chain contracts] will be locally beneficial, they are relatively small beer to the £18bn value of the project."
Commercial director for Hinkley Point C, Ken Owen, said: "I'm highly positive that Hinkley will be built and my job on the project is to get the supply chain equipped and ready to go."
He said the contracts were for a mixture of services, and 660 jobs would be created locally.
Mr Owen said: "We're not just building a power station, we're servicing a mini-city. We've got 5,500 people per shift, per day. We have to look after the catering, the welfare.
"We're building the largest hotel in the UK - 1,500 beds per night - and the management of that is being done by local businesses."
The total value of contracts for South West firms now stands at £450m.
The owners of a new Indian clothing store called Hitler say they will rename it after receiving complaints.
[NEXT_CONCEPT]
Contracts worth £250m for the proposed Hinkley C power station have been announced but a campaign group claims the deals are "jumping the gun".