The exchange of fire came after a deadly attack took the lives of 26 people in what India claims was a Pakistan-backed "terror attack".

Indian and Pakistani troops exchanged gunfire for a second straight day on Saturday as ties plummeted between the two nuclear-armed neighbours after an attack on tourists blamed on Pakistani militants killed 26 in India's Kashmir region.

Already icy relations between India and Pakistan continue to deteriorate, with ties plunging to their lowest level in years. According to officials on Friday, troops from both countries exchanged fire overnight across the Line of Control in disputed Kashmir.