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An Indian Navy MIG trainer aircraft crashed outside a village in Goa on Saturday noon, a senior defence official said.
Both the pilots ejected safely, said Indian Navy Flag Officer, Goa, Rear Admiral Philipose George Pynumootil.
A major tragedy was averted as the pilot pointed the aircraft away from populated areas.
The officer said the aircraft was on a regular training sortie when the incident occurred.
A villager said the aircraft crashed on a rocky plateau on the outskirts of Verna, 15 km from the state capital, around noon.
The wreckage of the aircraft lay strewn in one-km area, he said.
The aircraft is attached to INS Hansa located near Dabolim in Goa.
Taking to Twitter, the Indian Navy spokesperson said, "During a training mission, after take-off from INS Hansa at Dabolim a MIG29K trainer aircraft suffered an engine fire. The pilots Capt M Sheokhand and Lt Cdr Deepak Yadav ejected safely".
The pilots were provided first-aid and shifted to hospital in Vasco.
The Indian Navy and the Goa Police have cordoned off the site of the mishap and are in the process of clearing the wreckage.
"About noon, a MIG-29K twin seater aircraft, on a routine training sortie, encountered a flock of birds after take off from the INS Hansa airbase at Dabolim in Goa. The pilot observed that the left engine had flamed out and the right engine had caught fire.
"Attempts to recover the aircraft were unsuccessful due to damage and low height. The pilot, showing the presence of mind, pointed the aircraft away from populated areas and both pilots ejected safely. An enquiry has been instituted by the navy. Both the pilots are safe. There has been no loss of life or damage to property on ground," a defence release said.