Amazon EC2 plugin: Cannot run program "git"

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I am able to use Amazon EC2 plugin to provision EC2 instances and start the Jenkins slave if the Jenkins’ project does not use git. It claims Cannot run program “git” if the Jenkins job uses git.

Configure Clouds:
Remote FS root: /home/ec2-user
Remote user: ec2-user

Error:

java.io.IOException: Cannot run program “git” (in directory “/home/ec2-user/workspace/demo1”): error=2, No such file or directory