As a grandmother held her daughter's child that doctors said was dead, she noticed the infant's eyes twinkling and felt the baby breathing.
Stunned but happy, the family rushed back to the hospital where the baby was born and had it warded again.
Doctors at the Mahatma Gandhi Memorial Hospital in Bharapur in India's northern Rajasthan state reported that the baby is alive and in a stable state, Tamil Nesan reported.
The paper said the hospital staff had wrongly declared the new-born baby dead and handed the infant back to the unhappy parents after they signed the discharge forms.
The father, identified as Pappu and in his 20s from Mandigarh village, said his 22-year-old wife Gujri had given birth to the seven-month premature baby on March 13.
Staff at the maternity ward later told them the baby had died.
The heart-broken parents made the preparations for the baby's cremation and on the way back to the village, the grandmother made the stunning discovery that it was still alive.