Bumrah, who played two T20 home matches against Australia last month, was ruled out against the ongoing home series against South Africa after the injury flared up. He had also missed the Asia Cup due to the injury.
"The BCCI Medical team has ruled out Team India fast bowler Jasprit Bumrah from the ICC Men's T20 World Cup squad," BCCI secretary Jay Shah said in a statement.
"The decision was taken following a detailed assessment and in consultation with the specialists."
The BCCI said they will be naming a replacement for Bumrah in the squad for the tournament soon. India begin their campaign on October 23 against arch-rivals Pakistan in Melbourne.
Bumrah's absence is another huge blow to India who also lost all-rounder Ravindra Jadeja to a knee injury that required surgery last month.
Mohammed Siraj came in as a replacement for Bumrah in the South Africa series while seamers Mohammed Shami and Deepak Chahar were named as standby players when India announced its squad last month.
India, who won the inaugural edition of the T20 World Cup in 2007, failed to advance to the knockout stages of last year's tournament.
