The duo was eventually fished out and rushed to the civil hospital in Vadodara, were doctors declared them dead, the official said.
Nearly 600 COVID-19 patients are on oxygen support at the government-run hospital, but the supply was not hindered as the leakage was plugged within 20 minutes, a doctor said.
The parents of the newborn had also tested positive for coronavirus infection and are being treated for it.
The blaze erupted at Shreeji Agarbatti unit located in Makarpura industrial area and spread rapidly due to chemicals stored in a godown on the top floor of the factory, an official said.
The PM had addressed BJP workers at a rally in Gandhinagar on October 16 and on October 8, he had visited his home town Vadnagar and also inaugurated and laid foundation stone of various projects.