India is scheduled to travel down under for the Border-Gavaskar Trophy in December-January.
Both Smith and Warner weren't there when Virat Kohli's men charged their way to a historic 2-1 Test series win down under because of the bans imposed on them after involvement in the 2018 ball-tampering incident in Cape Town.
Their returns, especially in home conditions, will add significantly more strength to the Australian batting line-up and make life difficult for the much-vaunted Indian pace attack.
"I am certainly looking forward to it (the India-Australia Test series). It will be a very interesting one. India will come with the confidence of having won last time they toured Australia," Chappell said on the 'Sony Ten Pit Stop' show.
"It will be a bit harder this time (for India) with Smith and Warner in the Australian side. But India are well equipped to handle Australian conditions."
"Australia are pretty hard to beat at home and particularly with the attack that they have got at the moment, it is a very, very strong attack," he added.
"The batting last time India were here wasn't so good. If India can keep getting Warner and Smith out cheaply, then India could win. If they don't get Warner and Smith cheaply, Australia will win."
Chappell also heaped effusive praise on Indian skipper Kohli, who, he believes, is the best batsman across all three formats.
"India has had some pretty good batsmen, but the comment I made was over the three formats. I was basically asked Steve Smith or Virat Kohli and I said over the three formats, you can't pick anyone ahead of Kohli," he said.
"I mean his records in all three formats is incredible and how he averages over 50 in T20 cricket, I think it's a tremendous feat."
"So, he (Kohli) in my opinion, if you are taking about all three formats, Kohli is the best batsman at the moment."
The COVID-19 pandemic has led to cricket's global shutdown for an indefinite period, but Chappell reckons the game is strong enough to survive this phase.
"It will certainly be different (after this phase is over) and I am not 100 per cent sure in what ways it will be different. But the game continues to evolve and I am sure it is strong enough that it will survive this."
"You would hope that the administrators have taken this time to think about the game and where it's going to go and where it can improve, so hopefully it might even come back stronger," he added.
(Inputs from PTI)