In the attack terrorists seized a Chabad office in the city and have been holding Rabbi Gavriel Holtzberg and his wife hostage.
The Foreign Ministry ordered Israeli diplomats stationed in representatives around Asia to travel to Mumbai immediately to help treat Israelis in the city.
The ministry is also examining the possibility of sending a team of Israeli doctors stationed in New Delhi to Mumbai to assist the local authorities in treating the injured.
Thursday morning, the Foreign Ministry began initial preparations for sending aid to Mumbai from Israel, but the final decision to transfer aid to India has not yet been made, since India is not in need of such aid at this point.
Nonetheless, Jerusalem did not rule out the possibility that an Israeli airplane carrying medical and other equipment be sent to India at a later stage, and possibly be used to bring Israelis staying in India back home.
Magen David Adom Director-General Eli Bin instructed the organization to prepare for the deployment of a team of paramedics and medical assistants to help locate and treat missing people in Mumbai.
Terror attack victim in Mumbai (photo: AP)
The organization said it would cooperate with the International Red Cross and the Foreign Ministry and give any aid that is necessary.
Magen David Adom Spokesman Zaki Heller, who is in charge of sending the aid envoy, said, "We are preparing to send a team of doctors, paramedics, medical assistants and professionals and are preparing for the possibility that we may be called to treat victims in hospitals or locate families and friends.
"We have already made contact with the joint organization's envoys in the area to help us understand what is needed."
The defense establishment did not make any decision regarding the deployment of a terror combating intervention team to help the Indian security forces.
Defense establishment officials are in constant contact with the Indian authorities and the Israeli representatives in India.
A defense establishment source told Ynet Jerusalem is closely following the Indian commando units' operations to have the hostages released from the hotels and the Chabad office in Mumbai.
Meital Yasur-Beit Or contributed to this report