The Indian government on Wednesday classified the recent car explosion in New Delhi as a "terrorist incident," according to a Cabinet statement.

Monday's explosion occurred in a car around 7 p.m. local time near the historic Red Fort, with the blast sparking a large fire that spread to nearby cars and rickshaws. At least eight people were killed in the blast. 

"The country has witnessed a heinous terror incident, perpetrated by anti-national forces," the Cabinet said. 

The "terror" label gives investigating authorities broader powers to arrest or detain people.

Earlier on Wednesday, security agencies detained several suspects in the contested Kashmir region as part of their probe.

Five detained for questioning in series of raid overnight

Police officials Wednesday detained at least five people for questioning in a series of raids overnight in the Pulwama district of Indian-administered Kashmir.

Police in Kashmir earlier said they dismantled a suspected militant cell operating from the disputed region to the outskirts of New Delhi.

At least seven people, including two doctors, were arrested and police seized weapons and a large quantity of bomb-making material in Faridabad, a city in Haryana state, which is near New Delhi.

Indian media say the blast could be linked to the same cell, but police have not commented citing their ongoing investigation.

Indian cities on high alert following Delhi blast

Major Indian cities, airports and railway stations have stepped up security following the deadly blast in the heart of the capital city.

The Red Fort is one of the best-known landmarks of India and a major tourist attraction. 

The fort is where Indian prime ministers deliver Independence Day speeches every year on August 15.

In 2000, militants attacked an Indian Army base inside the Red Fort, killing at least three people. The Pakistan-based Lashkar-e-Taiba militant group claimed responsibility for the attack.

Indian troops left the fort in December 2003, after which it was handed to the Tourism Ministry.

Edited by: Sean Sinico