The Indian navy and coast guard were racing against time on Sunday to rescue seafarers after a Panama-flagged cargo vessel carrying 24 crew members sank off the eastern coast.

Two Chinese nationals from the cargo ship MV Ocean Winner were rescued late Saturday while three ships were deployed to conduct surface searches for the remaining members, the officials said.

The vessel carrying 71,000 metric tonnes of iron ore developed a list on Friday and sank within eight minutes in the Bay of Bengal, forcing crew to abandon ship, Shyam Jagannathan, director general of India's Maritime Administration, said.

Mr Jagannathan said the chances of finding survivors generally fall sharply after 12 hours, but rescuers were continuing the search.

The remaining missing crew members included 18 Chinese nationals, three Myanmar nationals and one Bangladeshi, according to the Indian coast guard.

The coast guard has sent two vessels from Sri Vijaya Puram, formerly known as Port Blair, for the search-and-rescue operation, a spokesperson said.

The MT Aisopos, a commercial vessel in the vicinity, was asked to help search for the ship in distress, according to reports.

The Ocean Winner was carrying iron ore bound for China after departing from India's eastern Paradip port in Odisha state on Friday. It sank about 444km from the Paradip coast.

India's ports and shipping minister Sarbananda Sonowal said all agencies were coordinating closely and actively doing search and rescue efforts. "Two survivors have been successfully rescued and are being given medical care; their rank and identity are currently being verified," he said in a social media post.

"My prayers for the safety of the remaining crew."