A deadly car blast in a busy area of India's capital city Delhi was a terror incident, the country's government has said.

At least eight people were killed and 20 more injured in the explosion near the city's historic Red Fort on Monday.

Prime minister Narendra Modi's cabinet condemned the attack at a security meeting late on Wednesday, stating it was a cowardly act carried out by anti-national forces.

Authorities have not yet named anyone or made any arrests in connection with the explosion.

In Wednesday's resolution, the cabinet stated: The country has witnessed a heinous terror incident, perpetrated by anti-national forces, through a car explosion.

The cabinet directs that the investigation into the incident be pursued with the utmost urgency and professionalism so that the perpetrators, their collaborators, and their sponsors are identified and brought to justice without delay.

The cabinet also expressed its unequivocal condemnation of this dastardly act, which led to the loss of innocent lives.

India maintains an unwavering commitment to a zero-tolerance policy towards terrorism.

The explosion occurred near a metro station close to the Red Fort, one of Delhi's most high-profile landmarks.

Delhi Police Commissioner Satish Golcha said the incident happened at around 18:52 local time (13:52 GMT) when a slow-moving vehicle, carrying three people, stopped at a red light before it exploded.

As news of the explosion spread, Delhi police declared a high alert, and neighboring states, including Uttar Pradesh, followed suit.

Police, forensic experts, and security teams are investigating the incident, with Home Minister Amit Shah assuring a thorough investigation.

Prime Minister Modi sent his condolences to the victims’ families. Opposition leader Rahul Gandhi offered his sympathies, calling the news extremely heartbreaking.

The Red Fort, built in the 17th Century, is a significant tourist site and is the location where Indian prime ministers deliver their annual Independence Day speeches.