India says it is reviewing ties with Pakistan

Prime Minister Manmohan Singh says India wants to have friendly ties with Pakistan, but this was not possible without a similar effort by Islamabad.

Singh told a governing Congress party meeting Sunday that the government "will take future steps after a careful review of the situation."

Three Pakistani soldiers and two Indian soldiers died in the worst bout of fighting in Kashmir since a cease-fire accord was signed by the countries in 2003.

India says one of its soldiers was beheaded, a charge denied by Pakistan.