McSweeney beat off competition from specialist openers including Marcus Harris and Cameron Bancroft as well as youngster Sam Konstas to take the vacant opening slot for the Perth Test, scheduled to start on November 22.
The 25-year-old had been backed to take the spot just ahead of the second unofficial Test for Australia A against India A earlier this week. Although he made 14 and 25 on a tricky pitch opening for the first time his first-class career, McSweeney has been preferred over the rest.
Inglis, who captains Australia in the 3rd ODI and the following T20I series against Pakistan, has earned himself a call up a back-up wicketkeeper and a batter. The 29-year-old wicketkeeper-batter has been rewarded for his Sheffield Shield season.
Apart from Inglis and McSweeney, Australia has also named Scott Boland as the reserve pacer to play back up to skipper Pat Cummins, Mitchell Starc and Josh Hazlewood, who are expected to be the favourites to form the pace attack in Perth.
Usman Khawaja will open alongside McSweeney as Cricket Australia's chief selector confirmed after announcing the squad for the 1st Test set to be played at the Optus Stadium in Perth.
"Nathan has displayed the attributes we believe will equip him well for Test cricket along with a strong recent record in domestic cricket," Bailey was quoted as saying by cricket.com.au.
"His performances for South Australia and Australia A weighed in his favour and supports our view he is ready for the opportunity at Test level. Similarly, Josh has been in great touch in the Sheffield Shield competition and deserves his place in his first Test squad."
Steve Smith is expected to bat at number four with Marnus Labuschagne set to retain the number three slot, while Travis Head and Mitchell Marsh, who were on paternity leave, are back in the squad and will make up the batting options.
Alex Carey, who has hit two centuries in three Shield matches to be the competition's top run scorer with 452 at 90.40, will don the wicketkeeping duties. Nathan Lyon will play as the lone specialist spinner. Here is a look at Australia's squad for the 1st Test against India:
Australia Squad for Perth Test vs India
Pat Cummins (captain), Scott Boland, Alex Carey (wicketkeeper), Josh Hazlewood, Travis Head, Josh Inglis, Usman Khawaja, Marnus Labuschagne, Nathan Lyon, Mitch Marsh, Nathan McSweeney, Steve Smith, Mitchell Starc.