The Delhi Fire Services received a call about the fire at the factory around 6.20 pm and 10 fire tenders were rushed to the spot.
According to an official, there is a rubber factory on the second storey above the firecracker factory.
Meanwhile, Delhi chief minister Arvind Kejriwal posted a tweet saying that he was keeping a close watch on the rescue operations.
"Prima facie it appears packaging of the fire crackers were going on, but no machines have been found", he said.
Delhi Health Minister Satyendar Jain also visited the site and met the two survivors at the hospital.
Policemen comfort the relative of a man who died in the factory fire in Bawana.
The incident took place at F-90 in northwest Delhi's Bawana area. Several casualties reported. Monitoring the situation. "Have ordered an enquiry", Jain tweeted. Ten women and seven men were killed, another fire official said, noting that a man and woman have been injured.
An official from fire department of Delhi reportedly confirmed that they removed nine bodies so far and fire started in basement of the building spreading upwards within no time. My thoughts are with the families of those who lost their lives. "The fire had broken out from the basement of the factory and eventually spread to the ground floor and the upper floors", he was quoted by Indian Express. "May those who are injured recover quickly".