Three fire engines were pressed into service to douse the fire, which took several hours. Personnel from district police, ITBP, CRPF, GREF and members of the market committee carried out the rescue operation.
The cause of the inferno is yet to be ascertained, Upper Subansiri district commissioner A K Singh said.
The homeless families have been temporarily sheltered in District Urban Development Agency (DUDA) market complex building that have been turned into a make-shift relief camp.
Chief Minister Pema Khandu has expressed shock and grief over the fire mishap and directed the district administration to provide immediate relief materials to the victims.