Relations between India and Pakistan are cratering following a deadly attack in the disputed Himalayan region of Jammu and Kashmir that left more than two dozen tourists dead, raising fears of military escalation between the nuclear-armed rivals.

Police in India's Kashmir published notices on Thursday naming three suspected militants "involved in" the attack on tourists this week in which 26 people were killed, and announced rewards for information leading to their arrest.

At least 26 people were killed and 17 others wounded when gunmen opened fire on tourists in Indian-controlled Kashmir, the worst assault in years targeting civilians in a restive region that has seen an anti-India rebellion for more than three decades.