Local officials fear the death toll will rise, as 11 other children were injured in what many consider the worst school bus accident in the region in recent years.
"The bus rolled into a 200ft-deep gorge, killing 27 schoolchildren, two teachers and the driver", said Santosh Patial, a senior local police official.
A school bus has plunged off a mountain road in northern India.
The bus was carrying more than 40 people.
"The boy was transported by emergency personnel to Nebraska Medicine in extremely critical condition".More news: Finger find adds weight to earlier out-of-Africa timing
About 13 people were seriously injured.
The accident occurred near Charoti on a highway connecting state capital Mumbai with the city of Ahmedabad.
"After several students disembarked the bus, the bus driver continued her route westbound on Sprague Street", the report states.
India has some of the world's deadliest roads.
Bus accidents are not uncommon in India due to poor infrastructure and safety measures.More news: Champions League In Focus - Bayern Munich vs Sevilla Preview
Initial reports indicated the bus driver was speeding as he took the children home and lost control at the edge of the gorge.
"I am deeply anguished by the loss of lives", Prime Minister Narendra Modi tweeted. The principal of the Wazir Ram Singh Pathania Memorial School, Sunita Kumari, said, "The bus had been inspected by all the authorities and had met all norms".
The state government has announced 500,000 rupees ($7,700) in compensation for each victim's family.
"My prayers and solidarity with those who lost their near and dear ones in the accident", he wrote on Twitter.More news: Is the gender pay debate misleading?