Two soldiers were killed and three others wounded in Indian-controlled Kashmir on Saturday as soldiers traded fire with armed militants who were holed up inside an army camp, officials said.
The gunbattle began in the early morning and continued into the afternoon. By evening, the militants had been contained in one part of the camp's residential quarters, army spokesman Col. Davinder Anand said, adding that the presence of soldiers' families at the camp meant that the military had to respond very cautiously to the attack.
It was unclear how many militants were involved in the attack.
The camp is located on the outskirts of the city of Jammu. The area was cordoned off and schools were closed.
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The Himalayan region of Kashmir is divided between India and archrival and neighbor Pakistan. Both claim the region in its entirety.
Several militant groups have been fighting for Kashmir's independence from India or its merger with Pakistan since 1989. Around 70,000 people have been killed in the uprising and the ensuing Indian military crackdown.
Anti-India sentiment runs deep among Kashmir's mostly Muslim population, with most people supporting the rebel cause.
India accuses Pakistan of arming and training the militants, a charge Islamabad denies.