Santosh, another Indian film that was officially entered this year and co-produced by the UK, made it to the shortlist.
Critics have praised its feminist themes, focusing on women's aspirations in the face of societal restrictions.
The film, directed by Kiran Rao, received a standing ovation at the Toronto International Film Festival (TIFF).
Laapataa Ladies is about two young brides who get lost on a train.
