Faulkner, who was shockingly dropped from the squad for the 2017 Champions Trophy earlier this year, seems to have earned the recall based on his vast experience in the subcontinent.
"James is a solid one-day campaigner and is very familiar with subcontinent conditions, coming off a very good tour of Sri Lanka previous year", chief selector Trevor Hohns said.
"Nathan brings raw pace to the side with good variation", selector Trevor Hohns said of Coulter-Nile's selection.
Surprisingly, however, Moises Henriques, Chris Lynn, John Hastings, James Pattinson and Mitchell Starc, will all be missing out on the anticipated series owing to injuries. All-rounder James Faulkner and paceman Nathan Coulter-Nile have both been recalled along with Ashton Agar and Hilton Cartwright. "We hope that he will take his chance in returning to the one-day side", he added.
"It is great to see him back from injury and we are hopeful he will have a big impact in this series".
[L to R] James Faulkner, Jason Behrendorff, Nathan Coulter-Nile, Tim Paine and Dan Christian, all of whom have been called up to Australia's limited-overs squads for the tour of India.
Australia T-20 squad: Steve Smith (C), David Warner (VC), Jason Behrendorff, Dan Christian, Nathan Coulter-Nile, Patrick Cummins, Aaron Finch, Travis Head, Moises Henriques, Glenn Maxwell, Tim Paine, Kane Richardson, Adam Zampa.
"Hilton is an aggressive striker of the ball and we think his game will be well suited to the transition to short-form cricket". He also revealed that Jason Behrendorff and wicketkeeper Tim Paine got the nod on the back of solid performances in the Big Bash League: "Jason has been a stand out performer for the Scorchers for a number of seasons and deserves his chance at this level". He had a solid IPL season this year and we believe his bowling will be well suited to the conditions we will face in India.
The Australians will be without Mitchell Starc for the campaign, with the quick yet to recover from the right foot injury he suffered during the second Test against India in March. "Consequently, in order to ensure his best possible preparation for the Ashes, he will be unavailable for the tour of India and will continue his rehab in Australia with an aim to have him play for New South Wales in the domestic one-day cup".
Australia are scheduled to play five ODIs and three T20Is in India between September 17 and October 11.