The crossover star wore the elaborate outfit, with visible underwear, for her second red carpet appearance at the film festival, Hindustan Times reports.
Sherawat's look received a mixed response on fashion blog High Heel Confidential.
User Anon1 commented: "The Cannes red carpet is famous for starlets showing up in outrageous outfits and she got what she wanted - attention."
"The problem is that the hair and make-up is not quite gelling with the rest of the look," said another poster.
The actress last year arrived with a snake around her neck for the promotions of her US production Hisss.
Sherawat had two of her films showcased at Cannes in 2010.