India and Pakistan's reciprocal actions following the killing of 26 men by suspected militants at a tourist spot in Kashmir are set to further curtail trade, which has more than halved since 2018, trade analysts and exporters said.

India and Pakistan have intensified their hostilities over the hotly contested Kashmir region following a massacre of 26 mostly Indian tourists, which New Delhi linked to Pakistan

A day after the U.N. appealed for restraint following Tuesday's deadly attack in Indian-administered Kashmir, India reported an exchange of fire across the de facto border in the disputed region.