India's prime minister warned on Friday of a "crushing response" to the suicide bombing of a paramilitary convoy in Indian-controlled Kashmir, an attack killed 41 and is now the deadliest in the divided region's volatile history.
Prime Minister Narendra Modi placed the blame for Thursday's bombing squarely on neighbouring Pakistan, which India accuses of supporting rebels in Kashmir.
"Our neighbouring country thinks such terror attacks can weaken us, but their plans will not materialise," he said, adding that government forces have been "given total freedom" to deal with the militants.
The attack is ratcheting up already hostile tensions between the nuclear-armed neighbours, who both administer parts of the disputed territory but each claim it entirely.
Pakistan has denied any involvement and warned India against linking it to the attack, but that hasn't stopped India from taking action.
India's Finance Minister Arun Jaitley announced on Friday that New Delhi was withdrawing the most favoured nation trade status given to Pakistan.
Pakistan's Foreign Ministry said the country condemns acts of violence anywhere in the world, and denied any involvement. (AP)