Border declared Australia's attack "more balanced" with Lyon and left-arm finger spinner Xavier Doherty with seamers Peter Siddle, Mitchell Starc and Moises Henriques as back-up.
Lyon was controversially dumped after an expensive First Test at Chennai when the right-arm offie went for 211 runs for four wickets in 45 overs.
Forecasts of heavy rain in Mohali on Thursday threatened to washout the opening day of the Test.
Speaking in his Fox Sports commentary commitments, Border said Lyon had to be recalled with spin again expected to be prominant in the Third match of the four-Test series.
Australia is also limited in selections after four front-line players were dropped for the Third Test on a controversial disciplinary action from coach Mickey Arthur and captain Michael Clarke.
Veteran wicketkeeper Brad Haddin returns to the Test scene as replacement for injured gloveman Matthew Wade, who twisted his ankle playing social basketball.
Border likes Australia's attack, despite the selection restrictions with four sacked tour party members.
"The bowlers have got to find ways of taking wickets with putting more pressure on and accumulating pressure with good bowling," Border said.
"It sounds simple, but they are the sort of things you've got to do to put the opposition under pressure and take the pressure off yourselves.
"It's the best team for the Australians to pick.
"It's about not to fight the conditions too much.
"We've got two spinners and we probably need to play them both.
"That looks a better balanced attack to me."
Australia XI for Third Test against India:
Michael Clarke (capt)