"The aircraft crashed near Uttarlai village in Barmer district at 3:35 pm," an IAF spokesman said in New Delhi.
The bodies of the pilots were found near the crash site by rescue helicopters.
"So far, no damage has been reported on the ground as the fighter crashed in an open area," he said. A team of flight safety officials from Air Headquarters had also rushed to the spot. The IAF has ordered a court of inquiry to find out the cause of the accident. The ill-fated aircraft was one of the older versions, which are progressively being phased out.