India's opposition Congress party has taken the offensive following its gains in last week's state elections.

It accused the government of spending more effort on controlling its political allies than on controlling prices.

A Congress party leader, Rajesh Pilot, told parliament the economy was heading towards high inflation and low growth.

Communist party MPs joined in the attack saying the governing BJP had lost ground because of rising prices.

The BJP also faces a revolt in its own ranks over a plan to permit foreign investment in the insurance industry.

More than seventy BJP members of parliament have signed a memorandum opposing the proposed legislation.

The BBC Delhi correspondent says the rebellion will dilute what had been seen as a strong signal to investors about the BJP's commitment to liberalising the Indian economy.