Police on Friday claim to have foiled a suspected terrorist plot to attack the IT hub of Bangalore following the arrest of two men believed to be Pakistani nationals in the south of the country.
The two men were held after an overnight gunbattle with police in Mysore, they said.
A plan to attack a prominent government building in Bangalore, home to India's top computer software and back-office firms, was uncovered, they added.
"Our men had to return fire after the terrorists opened fire," Praveen Sood, Mysore's Police Commissioner, said. "Two of our policemen have been injured."
He said an AK-47 rifle, a laptop, a satellite phone and a Pakistani passport had been seized from the men.
Sood said police had found plans of Vikas Soudha building in Bangalore - a newly built government administration block - on the men.
"They had done a comprehensive survey of Vikas Soudha in Bangalore and were planning an attack on it," he said.
"Based on initial interrogation and literature seized from the laptop, we have conclusive evidence that they belonged to Al-Badr organisation in Pakistan," said Sood.
Al-Badr is a Pakistan-based Islamist terrorist outfit fighting against Indian rule in Kashmir. Indian security agencies say it is made up mostly of terrorists from Pakistan and Afghanistan.
They say Pakistan-based Islamist groups have been increasingly planning to attack targets spread across India and particularly hit symbols of India's progress such as Bangalore.
Last December, an attack on the Indian Institute of Science in Bangalore, one of India's top colleges, was blamed on Pakistan's Lashkar-e-Taiba group. One teacher was killed in that incident.
Security forces were searching Mysore for more terrorists.
Sood said police had been on the look out for terrorists for weeks after receiving intelligence information that they were infiltrating the city.