Balaji's injury has failed to respond to treatment
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India suffered a blow on the eve of their opening Champions Trophy match when Lakshmipathy Balaji was ruled out of the tournament.
Seam bowler Balaji is suffering from an abdominal problem, which failed to respond to a pain-killing injection.
India, who are in group C with Kenya and Pakistan, have called up Amit Bhandari to replace him.
Bhandari, who has two one-day international caps, recently played for the India A team in Kenya.
India have been forced to make two changes to their original Trophy squad before even having played a single game in the tournament.
Star batsman Sachin Tendulkar was the first player ruled out because he is suffering from tennis elbow and was replaced by Rohan Gavaskar.