GUWAHATI, India, May 26 (Reuters) - A bomb exploded in a crowded market place in India's northeastern state of Assam on Saturday, killing seven people and wounding 18, police said.

The bomb was hidden in a rickshaw parked in the busy market area in central Guwahati, the state's main city.

Police said they suspected the separatist United Liberation Front of Asom (ULFA) to be behind the attack.

"We had intelligence inputs of ULFA targetting the city's crowded areas, a day ahead of celebrations to mark the state government's first year in power," said a police official.

The ULFA says it is fighting for the independence of Assam, which is rich in oil, natural gas and tea. The group accuses New Delhi of taking away its mineral and forest resources while neglecting the local population.

More than 20,000 people have been killed since the insurgency began in 1979.

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