The two-hour-long film depicts the struggle of Dadasaheb Phalke, the father of Indian cinema, to make 'Raja Harishchandra' in 1913, India's first feature film.
"Harischandrachi Factory" beat off competition from 15 films including Bollywood movies like "New York" and "Delhi 6" to get selected for the honour.
The nomination of the Marathi film was announced by The FilmFederation of India (FFI) and the jury was headed by noted actress Asha Parekh.