Uncapped fast bowlers Joel Paris and Scott Boland were included in the side for the 1st 3 of the 5-match series. There was no place for all-rounder Shane Watson. Fast bowler Mitchell Starc missed out due to injury.
The 26-year-old Victorian right-arm paceman Boland and 23-year-old West Australian left-arm quick Paris were named in the national squad for the first time, on Monday (January 4).
Commenting on their inclusions, National Selector Rod Marsh said, "Scott (Boland) has continued to impress the selection panel, having bowled very well for Victoria this year. He certainly deserves this chance at the top level.
"Joel (Paris) is an exciting young left-arm bowler who swings the ball well and has bowled beautifully in the Big Bash League for the Perth Scorchers. He has had very good figures in short-form cricket and we really want him to make the most of this opportunity."
The squad will assemble in Perth on January 8 (Friday). India and Australia will play 5 ODIs and 3 Twenty20 Internationals. The 2 sides will face off for the first time, on January 12, since the World Cup 2015 semi-final, which the hosts won.
Australia squad for 1st 3 ODIs Vs India
Steve Smith (captain), David Warner (vice-captain), George Bailey, Scott Boland, Josh Hazlewood, James Faulkner, Aaron Finch, Mitchell Marsh, Shaun Marsh, Glenn Maxwell, Kane Richardson, Joel Paris, Matthew Wade (wicketkeeper).