India's Prime Minister Narendra Modi said the gunmen who killed 26 tourists this week will be hunted "to the ends of the Earth".
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Indian troops have exchanged fire with Pakistani soldiers along their two countries' highly militarised border in Kashmir, according to Indian officials.
Pakistani soldiers fired at an Indian position in Kashmir late on Thursday, Indian officials said. Indian troops retaliated. No casualties were reported.
Pakistan’s Ministry of Foreign Affairs declined to comment on the report.
The gunfight comes amid soaring tensions between the nuclear-armed rivals following a deadly attack on tourists in Kashmir on Tuesday that killed 26 people. India described it as a “terror attack” with alleged “cross border” links, accusing Pakistan of backing it.
Pakistan’s government denied any connection to the attack, which was later claimed by militant group “Kashmir Resistance.”
Kashmir has seen many border skirmishes in the past, with both India and Pakistan claiming the region in its entirety.
The United Nations has urged both countries “to exercise maximum restraint and to ensure that the situation and the developments we’ve seen do not deteriorate any further”.
“Any issues between Pakistan and India, we believe can be and should be resolved peacefully, through meaningful, mutual engagement,” said a statement issued on Friday.
Diplomatic clashes
India has announced diplomatic actions against Pakistan following the attack in Kashmir.
On Wednesday, New Delhi suspended a decades-old water-sharing treaty with Pakistan, shut down the only functioning land border crossing and reduced diplomatic staff.
A day later, India revoked all visas issued to Pakistani nationals, effective this Sunday.
Pakistan responded on Thursday by cancelling visas for Indian citizens, closing its airspace to Indian-owned and operated airlines and halting all bilateral trade, including goods routed through third countries.
It also warned that any Indian attempt to stop or divert the flow of water would be considered an “act of war” and met with "full force across the full spectrum" of Pakistan’s national power.