The victims were said to have gathered near a level crossing to watch celebrations for the Hindu festival Dussehra.
According to The Times of India, citing railway officials, they had spilled on the tracks to get a good view of a burning effigy of the demon Ravana, which is a tradition of the annual gala.
The train was travelling from Jalandhar when the accident happened, with TV channel Times Now reporting that those struck were unable to hear it approach due to the overbearing sound of firecrackers being let off.
The speeding train reportedly did not stop following the accident, which also saw a number of people taken to hospital.
It happened at around 7pm local time.
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