Officer Monika Bharadwaj said the arrests were made Thursday after the woman complained that she was abducted and raped while visiting a friend in Karaikal, a port city in Pondicherry state.
Bhardwaj said that the woman has been hospitalized but that she did not suffer serious injuries.
Police have also detained a juvenile male for not informing the police about the crime.
Bhardwaj said the woman was first kidnapped by three of the accused around midnight Tuesday and released after nearly three hours of captivity.
As she called her friend to pick her up after she was freed, another group of seven people came in a vehicle and took her away, Bhardwaj said.
Police were questioning the accused to find out whether they knew each other or belonged to two separate groups, Bhardwaj said.
The assault came days after India marked the anniversary of the fatal gang rape of a 23-year-old woman on a moving bus in New Delhi that triggered nationwide protests.
The outrage spurred the government to adopt more stringent laws that doubled prison terms for rape to 20 years and criminalized voyeurism, stalking, acid attacks and the trafficking of women. Fast-track courts have been created for rape cases.
Four attackers in the New Delhi case were sentenced to death and a juvenile was sent to a reform center for three years.