All Indians are reported to be safe but 10 people have reportedly been injured. NDTV reported.
A grenade was reportedly lobbed inside the compound of the consulate. The Indo-Tibetan Border Police Force (ITBP) and Afghan security forces are engaged in a gunbattle with terrorists, news agency ANI said.
The blast shattered windows and doors in nearby buildings and destroyed at least eight cars, according to witnesses.
The strike follows a suicide attack on the nearby Pakistani consulate in Jalalabad in January.