India to decide response after 'ghastly' Pakistan attack

NEW DELHI (AFP) - India was to decide its response on Wednesday after accusing Pakistan of killing two of its soldiers and mutilating one of the bodies along the tense border between the nuclear-armed neighbours.

Foreign Minister Salman Khurshid said India would deliver a "proportionate response" to the "ghastly" killings in Kashmir on Tuesday which he said were designed to sabotage an already fragile peace process.

The Pakistani military meanwhile rejected what it called Indian "propaganda" that it said was aimed at diverting attention after a cross-border exchange at the weekend in which a Pakistani soldier was killed.

The two Indian soldiers died after a firefight broke out around noon as a patrol moving in foggy conditions discovered Pakistani troops about half a kilometre inside Indian territory, an army spokesman said.