The train was coming from Jalandhar to Amritsar and spectators reportedly could not hear the horn of the train being sounded due to the exploding crackers.
In a major train mishap on the Dussehra day, a train ran into large crowds who were watching Ravana Dehan in Choura Bazar near Amritsar of Punjab.
In February, four elephants were killed after they were hit by a train travelling from Guwahati to Silchar, about 110 miles away from its departure station in the state of Assam.
At least 300 people were at the spot watching "Ravana dahan" at a ground near the tracks.
Prime Minister Narendra Modi said he was extremely saddened by the train accident.
Navjot Kaur Siddhu, a local politician, said the celebrations take place in the area every year and railroad authorities are alerted to run the trains at slow speeds.More news: DAZN Exec: De La Hoya The Most Important Figure in PPV History
"The tragedy is heart-wrenching. The toll can rise", State police chief Suresh Arora told Reuters, adding emergency officials were still trying to ascertain the extent of the disaster on the outskirts of Amritsar in Punjab state. "It is a clear case of trespassing and the local administration should take responsibility", the railway official said.
"Very very sad to learn about the unfortunate rail incident in Amritsar during Dussehra festivities". The Punjab government also announced Rs 5 lakh relief to the deceased and will provide free treatment to all those who have been injured in this unfortunate incident.
The chief minister issued orders to mobilise all necessary administrative and police personnel on a war footing to help the district administration tackle the situation. My heartfelt condolences to the families of the victims.
"May god give strength to the bereaved families and wishing speedy recovery to those injured".
"Railways is providing all possible assistance at the site". "I have cancelled all engagemnts in U.S. and immediately returning back to India", he said in another tweet.
The Union Home Minister Rajnath Singh immediately expressed his pain over the loss of the lives.