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Marsh struggled on Australia's games against Pakistan in the UAE recently, making just 30 runs in four innings and claiming two wickets at an average of nearly 50
The allrounder and vice-captain has been replaced in the XI by Peter Handscomb for the clash in Adelaide.
Marsh struggled on Australia's games against Pakistan in the UAE recently, making just 30 runs in four innings and claiming two wickets at an average of nearly 50.
Captain Tim Paine said: "Mitch Marsh probably hasn't been as consistent as he would like and we would like.
"We know he's good enough to be a genuine allrounder at Test level.
Marcus Harris will make his Australia debut in Adelaide but Mitch Marsh has been dropped
"The quicks are going to have a bowl a bit more and we have full faith that (spinner) Nathan Lyon can do the job."
Marcus Harris will make his debut at the the top of the order alongside Aaron Finch, with Travis Head batting at five and Handscomb six.
India, meanwhile, have named a 12-man party for the match, with Kuldeep Yadav and Bhuvneshwar Kumar missing out.
Australia: Marcus Harris, Aaron Finch, Usman Khawaja, Shaun Marsh, Peter Handscomb, Travis Head, Tim Paine, Josh Hazlewood, Pat Cummins, Nathan Lyon, Mitchell Starc
India (from): Virat Kohli, Murali Vijay, Lokesh Rahul, Cheteshwar Pujara, Ajinkya Rahane, Hanuma Vihari, Rohit Sharma, Rishabh Pant, Ravichandran Ashwin, Mohammed Shami, Ishant Sharma, Jasprit Bumrah.