According to police, the incident happened last evening, when the baby girl's neighbour Ravi Solanki took her from her mother, Chitra Gupta, with him to play.
When the toddler, Dhanalakshmi, was playing with Solanki, another neighbour Rajat came there along with his dog, a senior police official said.
Rajat unleashed his dog on Solanki to frighten him but the canine attacked the girl and took her away.
"The dog dragged the girl on the street and was finally rescued by the people in the neighbourhood. She was taken to a hospital where she succumbed to her injuries," the official said, adding a case has been registered and the accused would be arrested soon.