EPA Indian paramilitary soldiers standing guard on the roof of a building

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Shots and artillery shells were fired across the disputed border between the two nuclear neighbours in Kashmir, marking an alarming escalation in tensions after an attack on an Indian military base in Kashmir earlier this month left 18 soldiers dead. The dawn attack by four gunmen prompted the Indian government to promise fierce retribution, but Pakistan has denied any involvement. In response, India said on Thursday it had conducted "surgical strikes" on suspected militants preparing to infiltrate from Pakistan-ruled Kashmir.

The action was the first direct military response to the intiial attack opn the army base and saw an exchange of fire including shelling. The strikes raised the possibility of a military escalation between nuclear-armed India and Pakistan, risking a ceasefire agreed in 2003.

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In his strongest warning yet of a military response to the ongoing dispute, Pakistani Defence Minister Khawaja Asif responded: "We will destroy India if it dares to impose war on us. "Pakistan army is fully prepared to answer any misadventure of India. "We have not made atomic device to display in a showcase. "If a such a situation arises we will use it and eliminate India."

GETTY Indian soldiers as they patrol along a barbed-wire fence near Baras Post on the Line of Control (LoC

REUTERS Shots and artillery shells were fired across the disputed border

REUTERS Indian army's director general of military operations Lt General Ranbir Singh

Both India and Pakistan claim Kashmir in full, but govern separate parts, and have fought three wars since independence from Britain in 1947, two of them over Kashmir. India has been ratcheting up pressure on Pakistan, winning support from the US, Britain and France over the attack.