Raina, who had been rested from the ODI series against Zimbabwe in June, returns to the fold even as senior off-spinner R Ashwin, pacer Mohammed Shami and all-rounder Ravindra Jadeja were given a break.
Medium pacer Jasprit Bumrah, batsman Mandeep Singh and Kedar Jadhav were included in the squad announced by new Chairman of selectors M S K Prasad after a meeting of the committee here.
The team had no place for left-handed opener Gautam Gambhir, who had forced his way back into the Test team after some solid knocks in the domestic circuit.
Prasad said Gambhir's name was discussed but "we needed continuity and we groomed Mandeep as an opener. He did extremely well against Australia A Down Under."
The selection committee chief said that the trio of Ashwin, Shami and Jadeja was rested keeping in mind the long home season that awaits India, during the side is scheduled to play 13 Test matches. All three are regulars in India's Test squad.
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Yadav, who has played a total of 42 first-class matches, has 117 wickets to his credit at an average of 29.70.
The squad features seven specialist batsmen in a star-studded line-up that includes Virat Kohli, Rohit Sharma and Ajinkya Rahane among others.
Dhoni is the lone wicketkeeper in the side and lends strength to the batting down the order.
The pace attack features, apart from Umesh Yadav, the likes of Bumrah and Dhawal Kulkarni. Hardik Pandya will fill the all-rounder's slot along with Axar Patel.
Prasad said that skipper Kohli spoke to them over Skype and was taken into confidence before selection.
"Virat has spoken to us, he was with us on skype. After discussing, this is the best possible team we could pick."
Prasad also said that he felt that they have done their best with the team selection.
"This is a fantastic team, we are very clear in our concsience. Whether success or failure, this committee takes the responsibility for it.