The film has been chosen by a 12-member jury appointed by the Film Federation of India (FFI), and out of a record number of 30 shortlisted films.
"'Liar's Dice' is the chosen film as India's Oscar entry this time," FFI general secretary Supran Sen told IANS.
"The last time we had a record number was 25 films way back in 2001," Sen added.
The movie, debut directed by Malayalam actress Geetu Mohandas, tells the story of a young tribal mother who, along with her three-year-old daughter, embarks on a journey in search of her missing husband. On the way, she meets an army deserter who decides to accompany them to their destination.
"Liar's Dice" won the best cinematography honour for Rajeev Ravi and best actress title for Geetanjali at the 61st National Film Awards.
It has also travelled to film festivals across the globe. Its world premiere was held at the Mumbai Film Festival last year and it was later screened at Sudance Film Festival as well as at the International Film Festival Rotterdam.
