At least 17 people were killed and many others injured on Sunday after a massive fire broke out in a building in the southern Indian city of Hyderabad, officials said.

The fire broke out in the morning inside a residential building in Gulzar House near the iconic Charminar area of the city.

"The fire broke out around 6:00 a.m., and by 6:16 a.m., the fire department was present at the spot. They tried to save people trapped inside, but the fire had engulfed the entire building," local government minister Ponnam Prabhakar told media.

Officials said most of the victims were killed in their sleep and the efforts to douse the fire are underway.

Preliminary investigations carried out by the police suggest that a short circuit might have caused the fire.

Indian Prime Minister Narendra Modi has expressed grief over the loss of lives in the fire incident and announced monetary compensation for the victims.

Chances of fire in Indian houses are usually high as people ignore safety standards and store combustible material haphazardly.