Police said three gunmen opened fire with machine guns and rocket-propelled grenades but one of them was killed. The other two fled into a nearby building.
It is not clear who is behind the attack and there are no details of casualties.
Later the Indian foreign ministry said all of its personnel were safe.
Syed Akbaruddin, a spokesman for the Indian government, confirmed the incident and praised "brave" consulate staff and Afghan security forces for repelling the attack.