While KL Rahul, Shikhar Dhawan and Bhuvneshwar Kumar were left out due to fitness related issues, batsman Rohit Sharma was also out forced out by a thigh injury which might require surgery.
Veteran opener Gautam Gambhir was retained in the squad after scoring a half century in the Indore Test against New Zealand.
Karun Nair is the reserve batsman and Jayant Yadav is the fourth spinner in the squad after Ravichandran Ashwin, Ravindra Jadeja and Amit Mishra.
The pace duo of Mohammed Shami and Umesh Yadav retained their places in the side. Ajinkya Rahane, Cheteshwar Pujara and Murali Vijay, on the other hand, were automatic inclusions.
The selection committee chaired by MSK Prasad fielded maximum queries regarding Pandya's inclusion and he stated that his "all-round abilities" with a sea change in attitude after working under India A coach Rahul Dravid went in his favour.
Prasad admitted that Pandya was one of the few seamer all-rounders that India has at the moment.
"Yes, I do agree he (Hardik) has not played much of first-class cricket. But going by his form, at some point of time all of us have to agree to this point that we need to identify the right all-rounders. He is one among the top all-rounders we have," he said.
"After the Australia A tour, if you look, his pace has increased, he is able to move the ball much better, his batsmanship has increased and overall his personality has just mellowed down. He did really well (in the A series) and in this ODI series (against New Zealand). He is one all-rounder who is an equally competent bowler, batsman and fielder," Prasad explained.
"We all know he is bit hyper. We are looking out for a very good all-rounder and Rahul (Dravid) is really working with him on mind aspect. I was part of the team (in Australia) where he worked so much on him. Now Anil (Kumble) is guiding him. As a batsman and a bowler, Hardik is better than Stuart Binny," he said. .