An Indian paramilitary Border Security Force (BSF) officer was killed and another wounded, according to Imtiyaz Ahmad, Indian senior police superintendant.
"Militants lobbed grenades and fired with automatic weapons injuring two BSF troopers, one of whom later succumbed (to his injuries)," Ahmad told CNN. "The firing has now stopped."
The attack happened in the town of Baramulla, about 54 kilometers north of Srinagar, the main city in Indian-administered Kashmir.
The Indian Defense Ministry also released a brief statement that "terrorists" had opened fire on the camp. It had no further details.
Tensions between Pakistan and India over Kashmir, one of the world's longest running conflicts, ratcheted up last month after 19 Indian soldiers were killed in an attack an army base on September 18.
Less than two weeks later, two Pakistani soldiers were killed in what the Indian army described as "surgical attacks" in the disputed border region to foil a "terrorist attack."
India has relocated more than 10,000 people
from around the disputed border area.
Exchange of gunfire
The two nations also exchanged gunfire Saturday morning
, with each of the nuclear neighbors accusing the other of provocation.
Kashmir, a Muslim-majority region, has been disputed territory between India and Pakistan for the past 70 years.
Both countries hold separate parts of it and have fought two wars, in 1947 and 1965, over their claims. They came close to a third in 1999.
Analysts said the recent tensions are the worst in a decade.
Speaking to CNN on Thursday, a resident of Indian-administered Kashmir, Mushtaq Ahmad Chaudhary, said border residents had not forgotten the horror
of having shells and bullets raining down on their communities.
"The latest developments have set in the fear and tension as the deteriorating situation may trigger cross [border] artillery duels [such as] we have witnessed during the 1990s when several villagers were killed and wounded," he said.