The water tank collapsed inside a labor camp in the Bhosari area of Pimpri Chinchwad township in Pune district, about 135 km southeast of Mumbai, the capital city of Maharashtra.
According to police, the laborers were bathing below the tank at the time of its collapse.
Police suspected the water tank collapsed most likely due to the pressure of water, which caused the tank's walls to burst.
Immediately after the accident, personnel from the disaster management department, police and fire and emergency services rushed to the spot to carry out rescue work.
On Tuesday, eight people were killed and many injured after an under-construction building collapsed in the southern Indian city of Bengaluru.
Deadly accidents due to failing infrastructure, either new or old, are common in India. Construction experts blame lax administration and corruption in India for flouting building rules that often result in using poor quality materials, inadequate supervision and poor safety standards for workers.