An Indian Air Force C-130J Super Hercules aircraft takes off during the Iron Fist 2013 exercise in Pokhran. PHOTO: AFP
Group captain Gerard Galway said the Air Force was looking into the accident that happened on the outskirts of Gwalior in the state of Madhya Pradesh.
"Rescue operation is underway. We are trying to find out about the casualties," he told AFP.
However, India's NDTV news network said all five on board had died in the accident.
The plane was on a routine flight and had taken off from an airbase in the tourist city of Agra.
India acquired six of the US-made heavy-lift military transport aircraft for around $1.1 billion in 2011.
India had recently deployed one of these aircraft to take part in the search and rescue operation for the missing Malaysian MH370 flight.
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