The explosion, believed to have been caused by an improvised explosive device (IED), took place in a food and vegetable market around 4 p.m. Digboi is 520 km east of Assam's main city of Guwahati. Most of the victims were shoppers or vendors.

"We believe it to be an IED blast. Of the 11, wounded five are in a critical condition with multiple injuries. They have been shifted to the Assam Medical College in Dibrugarh," eastern Assam police chief Bhaskar Mahanta said.

This is the 26th blast in the last five days in a series of explosions that have killed seven people, wounded 100 and blown up at least 10 oil and gas pipelines and two railway tracks.

The United Liberation Front of Asom (ULFA) is suspected to be behind the blast. However, the rebel group had Saturday said they were not involved in the blasts since Thursday and termed them as an attempt to derail the ongoing peace talks with the central government.