SpiceJet has around 12 '737 Max 8' planes in its fleet, while Jet Airways has five.
"DGCA has taken the decision to ground the Boeing 737-MAX planes immediately. These planes will be grounded till appropriate modifications and safety measures are undertaken to ensure their safe operations," the Ministry of Civil Aviation said in a tweet.
"As always, passenger safety remains our top priority. We continue to consult closely with regulators around the world, airlines, and aircraft manufacturers to ensure passenger safety," it added.
On Sunday, a 737 MAX 8 aircraft operated by Ethiopian Airlines crashed near Addis Ababa killing 157 people, including four Indians.
This was second such crash involving the 737 MAX 8 aircraft in less than five months. In October last year, an aircraft operated by Lion Air crashed killing over 180 people in Indonesia.