The two-day music festival will start from March 6 in Lavasa, Pune.
"I am thrilled to be performing at 'The Lost Party'. It is my first performance at a music festival and I'm happy because I love the ethos of the festival. I've also never been to Lavasa before so I'm looking forward to getting lost under the stars with a live music score," the singer said in a statement.
The former beauty queen won the Femina Miss India title in 2007 and released her first single "Forgot to Be me" on Valentine's Day last year. The song, which focuses on heartbreak, has been written and composed by her.