Bilal Ahmad Magray was injured in the firing last night at Zachaldara, 95 km from here, in Handwara area, they said.
Magray was taken to Medical Inspection room of the local Army unit from where he was referred to a hospital here, the officials said.
Locals today held a peaceful protests against the incident, they said.
A defence spokesman said the youth was injured when he tried to bypass a checking barrier set up in the area following information about movement of militants.
"An operation has been going on in Handwara since last Friday. There was information about three militants travelling on Zachaldara-Handwara road in a vehicle last night and multiple barriers were erected," he said.
Magray along with his brother tried to bypass the barrier when signalled to stop, following which the security personnel fired at them, the spokesman said.