Seasoned wicketkeeper-batsman Dinesh Karthik was called as a replacement for the injured Pandey.
"The All-India Senior Selection Committee have named middle-order batsman and wicketkeeper Dinesh Karthik as replacement for Manish Pandey, who sustained a left side strain during a practice session, in the India team for the upcoming ICC Champions Trophy," the Board of Control for Cricket in India (BCCI) said in a statement.
Karthik, who played for the Gujarat Lions in the Indian Premier League (IPL), amassed 361 runs, which included two brilliant half centuries.
Pandey had missed Wednesday's eliminator against Sunrisers Hyderabad due to the injury and would not be a part of the men in purple Qualifier 2 against Mumbai Indians on Friday dealing a body blow to Gautam Gambhir's wards.
Pandey was KKR's mainstay in the otherwise fragile middle-order scoring 396 runs in 13 innings at an average of 49.50. The 7-year old has been brilliant on the field too for the Shah Rukh Khan co-owned side.
"@im_manishpandey has unfortunately been injured & is ruled out of @IPL 2017 @BCCI has been informed of his injury. Wish him speedy recovery," KKR tweeted.
KKR would now have to depend on off-colour vice-captain Suryakumar Yadav to deliver the goods against a side who they have a dismal record with.
It is a blow for Virat Kohli's India too as Pandey was in form and seemed to be the understudy to Kedar Jadhav.
India play arch-rivals Pakistan on June 4 to begin their defense of the Champions Trophy.
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