The explosion occurred in central Imphal, state capital of Manipur, Myanmar's neighbor. It is a restive area that has long been the site of violent separatist attacks.
"Most of the victims were either shoppers or vendors," A.K. Singh, senior state police official, told AFP by phone from Imphal, adding that "a powerful IED (improvised explosive device) was planted".
According to Singh’s report, the injured were delivered to the local medical college hospital; at least six of them seriously wounded. Hospital officials said four bodies were found in the site of explosion.
The motives of the attack weren’t clear and no rebel group has claimed responsibility for it.
The state has long been the site of violent attacks. Numerous tribal groups and small guerilla armies often clash with each other in the struggle for dominance in the state.