The vessel, MV Ocean-Winner, had departed from Odisha's Paradip Port at around 10.30 pm on August 20 and was sailing towards Singapore, officials said.
There were 24 crew members aboard the ship, including 20 Chinese nationals, three from Myanmar and one Bangladeshi national.
Communication lost at sea
The Maritime Rescue Coordination Centre (MRCC) in Sri Vijaya Puram received information at around 11.48 am on August 22 that communication with the vessel had been lost.
The alert and a request for search and rescue assistance were received from Victory Star Group Co Ltd, the company operating the cargo ship.
Following the alert, Indian authorities launched a coordinated rescue operation to locate and assist the crew members.
Coast guard, navy launch rescue operation
Coast Guard ships Varad and Anmol were deployed for the search and rescue mission, while another vessel, Vijit, was sent from Sri Vijaya Puram to assist in the operation.
The Coast Guard said it has so far rescued two people from life rafts.
A senior IPS officer told PTI that other ships operating in the vicinity have also been alerted and asked to assist in the rescue operation.
Search efforts are continuing to locate the remaining crew members and determine the circumstances that led to the vessel's sinking.