The explosion in Paravur, Kerala, is believed to have happened at around 3.30am local time (6pm EST), The Times of India reported.
The temple was gutted as huge flames engulfed the building within minutes, trapping devotees inside.
Thousands of people were inside when the temple burst into flame, with sections of the building collapsing during the blaze.
A local official said at least 84 people died in the fire. Injured revelers have been taken to hospitals in two nearby towns.
Workers are still sifting through the rubble as they search for survivors.
'A spark from the crackers being burst fell into the stack of crackers kept in a makeshift compartment at the ground, triggering the fire,' a police official told NDTV.
'The space was an open group and people could run away,' they added.
Explosions from the building storing the fireworks sent huge chunks of concrete flying, according to resident Jayashree Harikrishnan.
'Huge pieces of concrete were flying through the air. Chunks landed in our yard,' she said.
The fire was said to be under control by 7am local time (9.30pm EST).
Indian Prime Minister Narendra Modi tweeted: 'Fire at temple in Kollam is heart-rending & shocking beyond words. My thoughts are with families of the deceased & prayers with the injured.'
Every year, the temple holds a competitive fireworks display, with different groups putting on light shows as thousands gather for the last day of a seven-day festival honoring the goddess Bhadrakali, a southern Indian incarnation of the Hindu goddess Kali.
This year's competition was happening without permission, after the state's High Court banned competitive light shows at temples.
State Labor Minister Shibu Baby John said incident would be investigated, and the victims would be compensated.
Source:Mailonline
Source:Mailonline
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