The nine-day exercise, known as Malabar, will seek to further strengthen naval cooperation between the three powers.
China claims that the trilateral exercise is a show of strength near Chinese waters, but Beijing has also described the exercise as having "low combat value" and posing little challenge to Chinese submarines.
"The exercise would encompass conduct of complex maritime operations in the surface, sub-surface and air domains, and focus on anti-submarine warfare, anti-air and anti-surface firings," the Indian Navy said on Wednesday.
A Defence Ministry release said two frontline indigenously designed and built Indian naval ships -- multi-purpose guided-missile frigate Sahyadri and ASW Corvette Kiltan will participate in the exercise, as well as the P-8 Poseidon spy plane.
The US Navy is being represented by the USS McCampbell, a Los Angeles-Class Attack Submarine, while the Japanese Navy is participating with its Izumo class helicopter destroyer J S Kaga, guided missile destroyers J S Samidare and Choukai.
"The participation of Indian Navy ships and aircraft in the exercise would significantly bolster the strong maritime bonds of friendship between the three countries and contribute to security and stability in the region," the Indian Navy added.
It is worth mentioning that ahead of 2017 Malabar Exercise, China reportedly sent its Yuan class conventional diesel-electric submarine to the Indian Ocean with the submarine support vessel Chongmingdao and intelligence-gathering ship Haiwingxing.