SRINAGAR (Reuters) - Indian and Pakistani troops exchanged gunfire for a second straight day on Saturday as ties plummeted between the two nuclear-armed neighbours after an attack on tourists blamed on Pakistani militants killed 26 in India's Kashmir region.

India and Pakistan's reciprocal actions following the killing of 26 men by suspected militants at a tourist spot in Kashmir are set to further curtail trade, which has more than halved since 2018, trade analysts and exporters said.

Relations between India and Pakistan are cratering following a deadly militant attack in Indian-administered Kashmir that has sparked tit-for-tat reprisals and raised fears of another military escalation between the nuclear-armed rivals.