As per reports, condition of 14 people is serious.
The incident occurred when a pendulum ride malfunctioned and crashed onto the ground with the riders on it.
The deceased are identified as 24-year-old Manali Rajwadi and Mohammad 22-year-old Javed.
"Twenty nine people were brought to the hospital out of whom two died while twenty seven are being treated," said Ahmedabad Mayor Bijal Patel was quoted as saying by news agency ANI.
Ahmedabad Municipal Corporation (AMC) Chief Fire Officer M F Dastoor said the accident took place as a pipe of the main shaft of the amusement ride broke, causing it to fall down.
"There are 32 seats in the ride that go round. The pipe of the main shaft broke and crashed on the ground. How that pipe broke is a matter of investigation by Forensic Science Laboratory (FSL)," he said.
The municipal corporation had given a contract to private contractors to operate rides in the area.
The AMC had given a contract to operate the rides in the area to private contractors.
Police Commissioner Vijay Nehra said an FIR will be registered and strict action will be taken against responsible persons. A proper investigation into why the ride malfunctioned will be launched, he said.