The Last Film Show, which is directed by Pan Nalin, is competing in the Best International Feature Film category.
Naatu Naatu is competing in the Best Original Song category.
Two other Indian films, All That Breathes and The Elephant Whisperers, have been shortlisted for the Documentary Feature Film category.
The Indian films, which have so far been nominated for the Oscars, are Mother India, Salaam Bombay and Lagaan.
The 95th Academy Awards will be held on Mar 12, 2023.