Relations between India and Pakistan are cratering following a deadly attack in the disputed Himalayan region of Jammu and Kashmir that left more than two dozen tourists dead, raising fears of military escalation between the nuclear-armed rivals.

Twenty-six men were killed and 17 were injured when suspected militants opened fire at tourists in India's Jammu and Kashmir territory, police said.

Police in India's Kashmir published notices on Thursday naming three suspected militants "involved in" the attack on tourists this week in which 26 people were killed, and announced rewards for information leading to their arrest.