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India's Prime Minister Narendra Modi warned Pakistan on Friday to expect a strong response to a suicide attack that killed 44 paramilitary policemen in occupied Kashmir, ratcheting up tension between the nuclear-armed neighbours. The car bomb attack on a security convoy on Thursday was the worst in the disputed region. India said it had "incontrovertible evidence" of Pakistani involvement - though that was quickly denied by Islamabad.
"We will give a befitting reply, our neighbour will not be allowed to de-stabilise us," Modi said in a speech, after meeting security advisers to discuss options. The attack comes months before national elections in India.
Jaish-e-Mohammad (JeM) claimed responsibility soon after a suicide bomber rammed a explosives-laden car into a bus carrying police personnel.
The White House urged Pakistan "to end immediately the support and safe haven provided to all terrorist groups operating on its soil".
Pakistan is due to host peace talks next week between the Afghan Taliban and the United States as part of efforts to seek a political settlement to the Afghan war, but escalating tensions with India could divert Pakistan's attention.
As outrage and demands for revenge flooded Indian social media, Arun Jaitley, one of the most senior figures in the Hindu nationalist-led government, told reporters India would work to ensure the "complete isolation" of Pakistan.
The first step, he said, would include removing most favoured nation (MFN) trade privileges that had been accorded to Pakistan - though annual bilateral trade between the countries is barely $2 billion. Indian Foreign Secretary Vijay Gokhale summoned Pakistan's ambassador, Sohail Mahmood, and issued a demarche demanding Pakistan take verifiable action against Jaish. India also recalled its ambassador in Pakistan for consultations, a government source said.
Crowds gathered in occupied Jammu, the Hindu-dominated part of Jammu and Kashmir state, demanding stronger action against Pakistan. A curfew was briefly imposed in Jammu after crowds overturned and set fire to some vehicles. Protesters were also marching to the Pakistani embassy in New Delhi.
The attack comes at a difficult time for Pakistan, which is struggling to attract foreign investment and avert a payments crisis, with its swiftly diminishing foreign currency reserves at less than $8 billion, equivalent to two months of import payments.
The escalating tension risks overshadowing a visit to the region by the Saudi crown prince, who is due in Islamabad over the weekend and New Delhi next week, with both governments hoping to attract Saudi investment.
India's Home Minister Rajnath Singh flew into Srinagar, and joined mourners carrying the coffins of the dead policemen, before they were sent to their homes across India.
Hundreds of thousands of Indian troops are deployed in occupied Kashmir. Singh said civilian vehicles will be stopped if there is a major movement of military convoys on the main highway following Thursday's attack.
Soon after Thursday's attack, Jaish released photographs and a video of a young Kashmiri villager, Adil Ahmad Dar, who it said had carried out the suicide attack on the convoy.
In the video, Dar warned of more attacks to avenge human rights violations in Kashmir. On Friday, hundreds of people gathered at his village of Lethipora to mourn his death.
His parents told Reuters that the 20-year-old took up the gun after he was beaten by troops in Kashmir three years ago. Chinese foreign ministry spokesman Geng Shuang expressed "deep shock" at the latest attack. China resolutely opposed and strongly condemned all terrorism and hoped "relevant countries in the region" could cooperate to combat the threat, he told reporters.

Copyright Reuters, 2019

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