Warner got injured by Mitchell Johnson while batting in the WACA Ground nets in the afternoon in Perth.
The selection panel announced that Usman Khawaja will replace David Warner in the squad for the first two matches against West Indies.
The team for the four-match Test series in India will be announced Thursday and a stand-by for Warner is likely to be announced.
Openers George Bailey, David Hussey or Alex Doolan could be included as a stand-by for Warner.
Warner's injury also means that Shane Watson could return to his preferred opening slot.
The first Test will be played in Chennai from Feb 22. Hyderabad (March 2-6), Mohali (March 14-18) and Delhi (March 22-26) will host the remaining three Tests.