Limited conflict between nuclear-armed India and Pakistan a possibility

As tensions build between India and Pakistan over last week's deadly terrorist attack on tourists in Kashmir, the focus is now turning to whether military conflict is a likelihood between the nuclear-armed neighbours.

- BY S VENKAT NARAYAN Our Special Correspondent

Though officials don't expect the South Asian countries to launch a larger-scale offensive, partly because of Kashmir's difficult mountainous terrain, Indian Prime Minister Narendra Modi's government may need to retaliate.

On April 22, gunmen killed dozens of civilians in Pahalgam in Kashmir, the bloodiest attack in the region in years. Limited conflict between the nations remains a possibility, Bloomberg speculates.

Ties have deteriorated rapidly since the attack, with India calling the incident an act of terrorism and holding Pakistan responsible for the carnage. Islamabad denies a role, vowing to return any volley of fire from the India side of the border.

The US has also stepped in, attempting to act as mediator between the countries, which both lay claim to Kashmir and have fought wars over the region.

On paper, India has a much bigger military should conflict escalate, with 1,475,000 in its armed forces, or more than twice the number in Pakistan, according to data compiled by the International Institute for Strategic Studies.

India also sets aside far more money for its military — about $86 billion last year. That places it among the top five spenders globally, with a budget eight times that of Pakistan's.