Blasts rang out across the city of Jammu in Indian Kashmir late on Thursday during what Indian military sources said they suspected was a Pakistani drone attack on the second day of clashes between the two neighbours.
Several parts of Jammu and the surrounding towns of Akhnoor, Samba and Kathua came under attack, according to Indian officials.
There was no immediate comment from Pakistan on what appeared to be an escalation in the countries' worst confrontation in more than two decades.
Pakistan’s Defence Minister, Khawaja Muhammad Asif, had earlier said further retaliation was “increasingly certain” after both countries accused each other of launching drone attacks.
India said it hit nine "terrorist infrastructure" sites in Pakistan on Wednesday in retaliation for what it says was a deadly Pakistan-backed attack in Jammu and Kashmir on April 22.
Pakistan says it was not involved and denied that any of the sites hit by India were militant bases. It said it shot down five Indian aircraft on Wednesday, a report the Indian embassy in Beijing dismissed as "misinformation".
Pakistan said earlier on Thursday it shot down 25 drones from India overnight, while India said its air defences had stopped Pakistani drone and missile attacks on military targets.
World powers from the US to Russia and China have called for calm.
Israeli and Lebanese envoys met in Washington on Tuesday as Israel pressed its war on Hezbollah, a diplomatic milestone overshadowed by conflicting agendas with Israel ruling out discussion of a ceasefire and demanding Beirut disarm the group.
Negotiating teams from the US and Iran could return to Islamabad this week to resume talks to end the war, sources told Reuters on Tuesday, after the collapse of weekend negotiations prompted Washington to impose a blockade on Iranian ports.
Italy's Prime Minister Giorgia Meloni said on Tuesday her government had suspended a defence cooperation deal with Israel, reflecting frayed ties between previously close allies as the conflicts in the Middle East continue.
A third Iran-linked tanker was entering the Gulf via the Strait of Hormuz on Tuesday on the first full day of the US blockade on vessels calling at Iranian ports, shipping data showed.
A teenager opened fire at a high school in Turkey's southeastern province of Sanliurfa on Tuesday, wounding at least 16 people, including students and teachers, before taking his own life, Governor Hasan Sildak said.