Pandey sustained the injury during a Kolkata Knight Riders practice session ahead of their IPL Eliminator against Sunrisers Hyderabad on Wednesday.
Karthik is in sublime form and has scored a lot of runs for his franchise Gujarat Lions in the tenth edition of the Indian Premier League.
Wicketkeeper-batsman Dinesh Karthik has earned a recall to India's one-day global squad for the upcoming Champions Trophy, replacing injured Manish Pandey, the country's cricket board said. Karthik's dominant batting helped Tamil Nadu clinch the title beating Bengal by 37 runs in the final of the tournament. He scored 396 runs at an average of over 49 and a strike rate of 128.57 but now has also been ruled out of the IPL. He last played for India against Afghanistan in the 2014 Asia Cup in Bangladesh. He has played 23 Tests, 71 ODIs and 9 T20Is for India.
Dinesh Karthik, who was one of the five standbys named by the Indian selectors while announcing the 15-member squad for the tournament, will now travel to England with Team India for the ICC Champions Trophy 2017.
India's defence of the Champions Trophy begins against New Zealand at the Oval on May 28.