Security personnel gunned down a militant in Kupwara district during a gunbattle on Tuesday.
Acting on an intelligence tip-off, the troops cordoned off the forest area and began firing to flush the militants out.
Both India and Pakistan claim the border region of Kashmir, with India accusing its neighbour of supporting separatist rebels and undermining its rule.
Pakistan denies arming the rebels, saying it only offers them political support. They have fought two of their three wars over the region.
