Ranked No. 20 in the world, the Australian initially suffered the injury during a Davis Cup match against Germany in February and hasn't played since. He will be replaced in the draw by "lucky loser" Matteo Berrettini.
Kyrgios began the year with a title at the Brisbane Open. He advanced to the fourth round of the Australian Open in January, ultimately falling to Grigor Dimitrov. Kyrgios has played only two matches since, both at the Davis Cup.
It's the second straight year Kyrgios has pulled out of Indian Wells. In 2017, after beating Novak Djokovic and Alexander Zverev, he withdrew before his quarterfinal match with eventual champion Roger Federer due to food poisoning. Kyrgios is next scheduled to play at the Miami Open.