Pakistan "strongly condemned" the terror attack in Gurdaspur on Monday even as reports suggested the militants may have come from across the border.
"We condemn in the strongest terms the terrorist incident in Gurdaspur, India, today, in which a number of precious lives have been lost," said a relase from Pakistan's ministry of foreign affairs.
"Pakistan reiterates its condemnation of terrorism in all its forms and manifestations. We extend heartfelt sympathies and condolences to the Government and people of India and wish the wounded speedy and full recovery, " it added.
The three terrorists who attacked a police station in the border town of Gurdaspur shot dead seven people, including four police personnel, before they were gunned down.
The Narendra Modi government warned unprovoked actions, such as cross-border terrorism, would get a befitting reply, although it was still committed to cordial ties with Pakistan “in the spirit of the Ufa meeting”.
"We want peace with Pakistan, but not at the cost of national honour...We will not be the first to attack or fire, but if challenged, will give a befitting reply," home minister Rajnath Singh said.
Jitendra Singh, a junior minister in Prime Minister Narendra Modi's office, said he did not rule out Pakistan's involvement. "There have also been earlier reports of Pakistan infiltration and cross-border mischief in this area," said Singh, whose constituency in the Jammu region borders Gurdaspur.
The attack came at a time national security advisers of the two countries were scheduled to meet in New Delhi, which was decided at a meeting between Prime Minister Narendra Modi and his Pakistani counterpart Nawaz Sharif in Ufa this month.
The terror strike could also jeopardise the resumption of bilateral cricket ties between the two countries. The Indian cricket team is scheduled to play Pakistan in two Tests and five ODIs at a neutral venue, possibly UAE, in December.