Conte was appointed as Cesare Prandelli's successor earlier this month, having enjoyed a hugely successful spell at Juventus.
The former Italy international's first game in charge of the national side will come against the Dutch in a friendly on Thursday, before Italy's Euro 2016 campaign begins in Oslo five days later.
However, Conte has left out Balotelli - the Liverpool striker who has 33 caps to his name and was taken to the European Championship in 2012 and this year's World Cup in Brazil by Prandelli.
Balotelli, who is suspended for the Norway match but could have featured against the Netherlands, recently moved to Anfield from Milan.
Conte is without midfield pair Andrea Pirlo and Riccardo Montolivo due to injuries, while Ciro Immobile keeps his place after featuring regularly in Brazil.
He is joined up front by Pablo Daniel Osvaldo and Stephan El Shaarawy - of Inter and Milan respectively.
There are also first senior call-ups for Sassuolo's Simone Zaza and Torino goalkeeper Daniele Padelli.
Squad in full:
Goalkeepers: Gianluigi Buffon (Juventus), Daniele Padelli (Torino), Mattia Perin (Genoa), Salvatore Sirigu (Paris Saint-Germain)
Defenders: Davide Astori (Roma), Leonardo Bonucci (Juventus), Giorgio Chiellini (Juventus), Gabriel Paletta (Parma), Andrea Ranocchia (Inter).
Midfielders: Antonio Candreva (Lazio), Matteo Darmian (Torino), Daniele De Rossi (Roma), Mattia De Sciglio (Milan), Alessandro Florenzi (Roma), Emanuele Giaccherini (Sunderland), Christian Maggio (Napoli), Claudio Marchisio (Juventus), Marco Parolo (Lazio), Manuel Pasqual (Fiorentina), Andrea Poli (Milan), Marco Verratti (Paris Saint-Germain).
Forwards: Mattia Destro (Roma), Stephan El Shaarawy (Milan), Sebastian Giovinco (Juventus), Ciro Immobile (Borussia Dortmund), Pablo Daniel Osvaldo (Inter), Simone Zaza (Sassuolo).