This is the dramatic moment a Formula 4 racecar crashed into spectators at a rally in Kashmir, India.

Footage shows the vehicle ploughing through the roadside barrier, hitting at least five people watching the event along the banks of Dal Lake in Srinagar on March 18.

The driver - who was reportedly trying to swerve but failed - emerged unscathed, while the spectators he hit suffered minor scratches.

Paramedics were at the scene to provide first aid.

The event was the first Formula 4 race in Srinagar and was held from 10 am to 2 pm. The track spanned 1.7 kilometres stretching from Lalit Ghat to Nehru Park.

Organised by the Department of Tourism in collaboration with the Indian Racing League and Formula-4, the event aims to promote tourism in Kashmir and introduce motorsports to the youth of the region.

Indian Prime Minister Narendra Modi praised the event, saying in an online statement: 'This is very heartening to see. It will help further showcase the beauty of Jammu and Kashmir. India offers great opportunities for motorsports to thrive and Srinagar is right on top of the places where it can happen.'