Test cricket's most-capped player Steve Waugh, who retired after leading Australia in the drawn four-Test series against India earlier this month, will captain the PM's XI in the annual match against the touring side.

Hussey, 26, scored a brilliant unbeaten 212 to lead Victoria to an unlikely win against Waugh's New South Wales team in Newcastle earlier this month, prompting Waugh to tip Hussey for future honours.

Exciting South Australia paceman Shaun Tait, 20, who took a national interstate one-day record of 8-43 earlier this month, has also been included in the side.

"This year's match promises to be one of the very best considering the strength of the current Indian squad," Australia chairman of selectors Trevor Hohns said.

"We've selected players who have been performing well at a domestic level, and this match gives them an opportunity to show their worth against one of the world's strongest limited-overs teams.

"Steve (Waugh) is a player most of these guys would have looked up to as they were coming through the ranks, and I know they will be thrilled to bits to play alongside him."

Prime Minister's XI: Steve Waugh (captain), Matthew Bradley, Cade Brown, Mark Cleary, Xavier Doherty, Chris Hartley, David Hussey, Andrew McDonald, Marcus North, Shaun Tait, Damien Wright, Evan Kellar (12th man).