Faulkner - man of the match in the 2015 World Cup final - had been left out of the squad for the Champions Trophy earlier this year, but his experience in the subcontinent has helped him earn a recall.
Coulter-Nile, who has been hampered by serious injury in recent years, will get a chance again having shown impressive signs in the Indian Premier League earlier this year.
All-rounder Moises Henriques, as well as injured quartet of Chris Lynn, John Hastings, James Pattinson and Mitchell Starc, are the five omissions from squad that was named for the Champions Trophy squad in June.
Starc has been rested for the entire tour as he continues his recovery from a foot injury.
In the T20 squad, Jason Behrendorff and Kane Richardson have been selected, while Josh Hazlewood has not been included for the T20 leg of the tour. Veteran all-rounder Dan Christian and keeper-batsman Tim Paine have both been named in the T20 squad, while Coulter-Nile has also been named for the 20-over matches.
"Nathan brings raw pace to the side with good variation," selector Trevor Hohns, was quoted as saying by cricket Australia website.
"It is great to see him back from injury and we are hopeful he will have a big impact in this series.
"James Faulkner is a solid One-Day campaigner and is very familiar with sub-continent conditions, coming off a very good tour of Sri Lanka last year. We hope that he will take his chance in returning to the one-day side.
"Hilton is an aggressive striker of the ball and we think his game will be well suited to the transition to short-form cricket."
ODI squad: Steve Smith, David Warner, Aaron Finch, Glenn Maxwell, Marcus Stoinis, Travis Head, Matthew Wade, Nathan Coulter-Nile, Pat Cummins, James Faulkner, Josh Hazlewood, Ashton Agar, Hilton Cartwright, Pat Cummins, Josh Hazlewood, Adam Zampa
T20I squad: Steve Smith, David Warner, Jason Behrendorff, Daniel Christian, Nathan Coulter-Nile, Pat Cummins, Aaron Finch, Travis Head, Moises Henriques, Glenn Maxwell, Tim Paine, Kane Richardson, Adam Zampa
australia odi squadaustralia teamind vs aus 2017india australia odi seriesJames FaulknerNathan Coulter-Nilesteve smitht20 squad
First Published: August 18, 2017, 11:15 AM IST