"The Embassy regrets to inform about the death of two Indian nationals in the bomb blast at Imam Sadiq Mosque in Kuwait on June 26," the Indian mission said in a statement.
Both the victims - Rizwan Husain (31) and Ibne Abbas (25)- were taking part in the prayers when they died, it said.
While Husain, a resident of Walipur village in Sultanpur district of UP, was working as a watchman in the Mosque, Abbas from Jalalpur in Ambedkar Nagar of UP was employed as driver.
Their bodies would be buried in Iraq's holy city of Najaf as per their family's wishes, sources said.
Indian Ambassador to Kuwait Sunil Jain visited the injured Indians who were admitted at Amiri Hospital.
"The conditions of all the injured Indians are stable and some of the injured have been discharged from hospital after first aid," an embassy official told PTI.
A suicide bomber struck the mosque on Friday during noon prayers, killing 26 people and injuring 227 in an attack claimed by the Islamic State.
Prime Minister Narendra Modi had condemned the "cowardly" attack in Kuwait, saying the progress of humanity lies in peace and brotherhood instead of hatred and mindless violence.
The embassy has advised Indian community in Kuwait to take precautions for their safety and security in the country in the wake of the blast.
Over 8 lakh Indians live in Kuwait, forming the second biggest expatriate community after the Egyptians.
Majority of the Indians are employed in private sectors and are construction workers, technicians, engineers, doctors, chartered accountants and IT experts.
Meanwhile, state-run KUNA news agency today said that police has arrested the driver who transported the suicide bomber to the mosque where he blew himself up.
Authorities have also detained the owner of the house where the bomber was staying, it said, citing a statement from the Interior Ministry.
The arrest came a day after thousands of mourners, including women clad in black dress, attended the funerals of 18 out of 26 victims of the bombing.
The bodies of the remaining victims were flown to Iraq's holy city of Najaf for burial.
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