In the days since, tensions have risen dangerously between India and Pakistan, which have fought two of their three wars over Kashmir.

India's army chief will review security arrangements on Friday and visit the site of a deadly attack on tourists in Indian Kashmir earlier this week, with fears of fresh tensions with long-time rival and neighbour Pakistan spooking markets.

India and Pakistan troops exchanged fire in the Jammu and Kashmir region on Friday, according to officials in New Delhi, as relations between the nuclear-armed neighbors deteriorate after a deadly attack on tourists this week.