Balaji suffered a stress injury to his right toe and was ruled out of the series as a result, said a Board of Control for Cricket in India (BCCI) press release yesterday.
The All-India Senior Selection Committee picked R Vinay Kumar as his replacement. Vinay Kumar has played eight T20Is and has picked up seven wickets with a best of 3-24.
The 28-year-old played his last T20I against South Africa at Johannesburg on March 30 earlier this year.
The two matches between India and England will be played in Pune (Dec 20) and Mumbai (Dec 22).