The suspected attacker, described as a Swiss man aged 27, was also taken to hospital after the incident near Salez in St Gallen Canton.
He had ignited a flammable liquid before attacking people with a knife.
Among the injured is a child of six. There was no immediate information as to motive or background.
Three rescue helicopters are at the scene. A major police operation is under way.
The attack occurred around 14:20 (12:20 GMT) as the train was approaching Salez station, between the towns of Buchs and Sennwald.
Several dozen passengers were on board at the time of the attack, reports BBC.
Apart from the child, a girl and a boy, both 17, two women aged 34 and 43, and a man aged 50 were hurt.
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