India and Pakistan began trading between their respective parts of Kashmir for the first time in six decades on Tuesday, raising hopes of a drop in tension in the disputed Himalayan region.

A convoy of 13 trucks carrying mostly apples set off on a historic trip to Pakistani Kashmir from the Indian-zone of the divided state, with 14 trucks packed with Pakistani fruit making the journey in the opposite direction.

"It is a historic day which will surely help the economy of both parts of Kashmir," said Indian Kashmir's Governor NN Vohra, as he flagged off the convoy from Salamabad, 12 kilometres from the Line of Control.

"I hope it will herald peace in the region," he said of what officials on both sides hope will be a twice-weekly trade.

Speaking on the other side of the heavily militarised border, Pakistani Kashmir's Prime Minister Atiqur Rehman said he also hoped the event will "help make headway towards resolving the Kashmir issue."

School children and people on the Pakistan side raised slogans "Kashmir will become Pakistan," and "Long Live Kashmir freedom movement."

Kashmir was split into two zones in the bloody aftermath of independence of the subcontinent from Britain six decades ago. Both India and Pakistan claim the region in full.

A Muslim insurgency broke out in Indian Kashmir in 1989, although militant violence has fallen sharply since the nuclear-armed states began a peace process in 2004 aimed at settling all issues including the future of Kashmir.

But in the past few months, the Kashmir valley has witnessed the biggest pro-independence demonstrations since a revolt erupted in 1989, triggering a violent crackdown by Indian security forces.

The opening of the trade route has been a key demand of Kashmiri separatists.

Developments that calm tensions will be good news for Indian authorities, who announced plans at the weekend to press ahead with polls in Indian Kashmir later this year despite the recent upheavals in the state.

Kashmiri truckers from both sides said they were delighted about the resumption of trade.

"I am very happy to be part of this historic moment," said Ghulam Hassan Baba, a driver from Srinagar.

"Never in my dreams I had imagined that one day I will drive my truck and go to the other side," said Mazhar Hussain, the driver of the first Pakistani truck.

Separatists, however, say India still needs to acknowledge that Kashmir is disputed, and be prepared to address the underlying issue of the future of the region.