Soldiers and police launched an overnight operation in Peethawada area, 70 kilometres (around 45 miles) northwest of the main city of Srinagar after receiving a tip-off that armed militants were hiding out in a local village.
Indian forces rape women in Kashmir, claims JNU student union leader
"Two terrorists were killed in the operation," army spokesperson Colonel N N Joshi told AFP.
Kashmir is divided between India and Pakistan by a heavily militarised Line of Control or LoC since the two countries won independence from Britain in 1947.
Both claim the Himalayan territory in its entirety.
Several rebel groups have for decades been fighting Indian forces deployed in the region, for independence or a merger of the territory with Pakistan.
Heavy gunfire heard as operation to flush out gunmen in Kashmir enters third day
The fighting has left tens of thousands dead, mostly civilians.
Violence in the territory has sharply declined during the last decade, but armed encounters between rebels and government forces occur regularly.
In February nine people including three Indian army special forces commandos were killed during a stand-off between militants and government forces that lasted three days.
COMMENTS (1)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ