The Boeing 787-8 Dreamliner, crashed onto a medical college hostel during lunch hour.
Air India said 241 people onboard the flight died, and the sole survivor - a British national of Indian origin - is in hospital. He was in seat 11A, next to an emergency exit
Police said the death toll was more than 240, revising down a previous toll of 294 as it included body parts that had been double counted.
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Ahmedabad police chief G.S. Malik said the bodies recovered could include both passengers and people killed on the ground.
"Thirty seconds after take-off, there was a loud noise and then the plane crashed," 40-year-old Ramesh Viswashkumar told the Hindustan Times, which showed a boarding pass for seat 11A in that name online.
"It all happened so quickly," he told the paper from his hospital bed.
Relatives have been asked to give DNA samples to identify the dead, state health secretary Dhananjay Dwivedi said.
Parts of the plane's body were scattered around the smouldering building into which it crashed. The tail of the plane was stuck on top of the building.
CCTV footage showed the plane taking off over a residential area and then disappearing from the screen before a huge fireball could be seen rising into the sky from beyond the houses.
The passengers included 217 adults, 11 children and two infants, a source told Reuters. Air India said 169 were Indian nationals, 53 were Britons, seven Portuguese, and one Canadian.
