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Not only did the drubbing at home mark one of the darkest moments in India's Test cricket history, it has also significantly impacted the Rohit Sharma-led side's chances of qualifying for next year's World Test Championship final.
Hazlewood had said on Tuesday that Australia would be happy to eliminate England in the group phase to avoid meeting them later in the tournament.
Hazlewood's inexorable line and length, just on off stump and ducking away, was too much for the New Zealand top order.
The hosts knocked off the target in 6.4 overs to triumph inside three days.
The pitch is likely to be a major talking point following the Mumbai semifinal where the hosts made a late change and served up a slow wicket against New Zealand.
Hazlewood has reportedly being given additional time to recover and prepare for the Ashes series.
The 32-year-old joins captain Pat Cummins, Scott Boland and Mitchell Starc as the specialist fast bowlers in the squad.
Hazlewood is hopeful of joining the franchise later in the tournament.
Left-arm quick Mitchell Starc has already been ruled out of the opener while all-rounder Cameron Smith is doubtful, with both picking up finger injuries.
Selectors will not add any replacements for Hazlewood to the current squad and will instead pick a new squad after the Adelaide Test.
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