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The six-year-old pupil suffered the brutal ordeal at a private school in Singrauli district in Madhya Pradesh, central India, and is recovering at home after two days in hospital.
Police said the little girl went to school last Wednesday and when her teacher, Satya Narayan Verma, 23, realised she had not completed her homework, he punished her and asked her to go to the school's backyard and kneel down.
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He followed the girl and raped her while threatening her to remain silent.
She went back home at 6pm that day but her parents were not there so she went to her room and fell asleep.
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Later that night her mother found her bleeding and the girl told her what happened.
The next day her parents discussed the terrible crime with villagers who told them to go to the police.
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The little girl was immediately sent to hospital for treatment and the teacher was arrested the following day and sent to jail.
Dr Ritu Patel, who was treating the girl in hospital, said: "The girl has sustained severe injuries and was kept under observation from March 24.
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"She is now out of danger now and was discharged on Saturday."
Police Superintendent Singrauli Rudolf Alvares added: "The accused teacher has been arrested, booked under relevant sections and sent to jail."
