Parents of school students who were on the boat that capsized in a lake in India's Gujarat state have alleged that their children were "not given life jackets".

Twelve pupils, aged between seven and 12 years, and two teachers, drowned in the incident on Thursday in Harni Lake in Vadodara city.

Police have arrested two people in connection with the incident.

Search operations are underway to find the remaining victims.

Eighteen students and two teachers have been rescued so far and are undergoing treatment in a nearby hospital, authorities say.

While the cause of the incident is not yet known, eye witnesses say that the boat was packed beyond its capacity of 14 passengers.

The tragic incident has made national headlines, and many parents have accused the authorities of jeopardising their children's lives by flouting safety norms.

Federal minister Harsh Sanghvi said that only 10 students on the boat were wearing a life jacket, which means that a majority of the passengers were without one.

Many of them questioned why students were allowed to board the boat without adequate safety gear.

"This [incident] is the result of negligence...it has the direct responsibility of the system, the government and the school," one parent said.

Some parents have alleged that they were not informed about the boat ride, and the incident.

Naushin Gandhi, sister of one of the students who died, told The Times of India newspaper that the school had informed them that the students were going to be taken to a water park, but then took them to a lake instead.

"Since the tragedy, I desperately tried to contact the school authorities but nobody responded," she alleged.

Some parents alleged that such incidents, which result from the negligence of Gujarat authorities were happening "frequently".