The Airbus A320 Neo plane, which had 186 passengers on board, landed safely, Ahmedabad Airport director Manoj Gangal said.
The aircraft, powered by Pratt & Whitney Neo engines, returned to Ahmedabad after being airborne for over 40 minutes, he said.
"At around 9.38 am...the pilot of the aircraft reported failure of the second engine and requested to return the flight to the Ahmedabad airport," Mr Gangal said.
There were 186 passengers on board, he added.
A response on the incident was awaited from IndiGo.