Williams recently won her sixth Australian Open title but the world number one sat out last week's Fed Cup tie for the United States because of a persistent, nagging cough.
No reason was given for Bouchard's withdrawl, after she was awarded a wild card in the event.
Venus Williams won the title last year and will be defending her crown at Feb. 15-21 tournament.
(Writing by Sudipto Ganguly in Mumbai; editing by Julian Linden)
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