The Indian navy rescued people on board a ship in the Gulf of Aden after the crew issued a distress signal following a drone attack.
Indian authorities diverted a warship in the region to rescue 22 crew inside the Marshall Islands-flagged vessel on Wednesday night.
A fire that had broken out inside the vessel is now under control, the Indian navy said. Nine Indians were among those rescued.
The Gulf of Aden is a deep-water gulf of the Indian Ocean between Yemen to the north and the Arabian Sea to the east.
It comes after a series of attacks on merchant ships in the Gulf of Aden and the Red Sea in recent months.
A US-owned cargo ship suffered a fire on board after coming under attack off Yemen on Wednesday. The Houthi rebels have claimed responsibility.
The United Kingdom Maritime Trade Operations (UKMTO), which tracks vessels, said it was hit by a drone almost 70 miles southeast of Aden.
A military spokesman for the Houthis said "several missiles" struck the vessel. He said they would retaliate further against US and British airstrikes.
The attack highlighted the dangers Houthis pose to shipping, causing many operators to take other routes.
The Houthis say the attacks are aimed at supporting Palestinians in the Gaza Strip amid the war with Israel.
The US and its allies have carried out three air strikes on Houthi sites over the past week to try to deter the militants.
But the Houthis have launched several attacks since, further endangering ships on what is a crucial trade route for cargo between Asia, the Middle East and Europe.
