India will be playing five ODIs and two Test matches during the month-long series that will be held from Jan 19 to Feb 18.
While Pandey, 24, features in both the ODI and the Test side, 29-year-old Binny, who is the son of national selector and former India all-rounder Roger, figures in the 16-member ODI side.
Pacer Varun Aaron also makes a comeback in the ODI side while Yuvraj Singh and pacers Mohit Sharma and Umesh Yadav were dropped.
However, Yadav and Rohit Sharma, who had a woeful time in the two Tests in South Africa, retained their places in the 17-member Test side. Left-arm spinner Pragyan Ojha, who didn't feature in any of the Tests in South Africa was also dropped.
Pandey was selected after a good show in the domestic circuit. He was the leading wicket-taker in the 2012-13 Ranji Trophy, with 48 scalps at 21.06. In eight games this season, Pandey has picked up 30 wickets at an average of 24.76.
Binny had a decent Ranji season for Karnataka with both bat and ball. He was also a part of the India A side that toured South Africa. If Binny makes his ODI debut. it will be the third instance in Indian cricket of a father-son duo having played for the country. Binny's father Roger was a key member of the 1983 World Cup winning side and was the highest wicket-taker as well with 18 scalps.
In the past, Sunil Gavaskar and his Rohan and Yograj Singh and his son Yuvraj have played for India in ODIs.
The five ODIs will be held at Napier (Jan 19), Hamilton (Jan 22 and Jan 28), Auckland (Jan 25) and Wellington (Jan 31). The two Tests will be hosted by Auckland (Feb 6-10) and Wellington (Feb 14-18).
ODIs: Mahendra Singh Dhoni (captain), Shikhar Dhawan, Rohit Sharma, Virat Kohli, Ajinkya Rahane, Ambati Rayudu, Suresh Raina, R. Ashwin, Ravindra Jadeja, Bhuvneshwar Kumar, Mohammed Shami, Ishant Sharma, Amit Mishra, Ishwar Pandey, Stuart Binny, Varun Aaron.
Test series: Mahendra Singh Dhoni (captain), Shikhar Dhawan, Murali Vijay, Cheteshwar Pujara, Virat Kohli, Rohit Sharma, Ajinkya Rahane, Ravindra Jadeja, Zaheer Khan, Mohammed Shami, Ishant Sharma, Ambati Rayudu, Bhuvneshwar Kumar, Ravichandran Ashwin, Umesh Yadav, Wriddhiman Saha, Ishwar Pandey.
--IANS (Posted on 31-12-2013)