India said on Saturday it had banned the import of goods coming from or transiting via Pakistan and barred Pakistani ships as tensions rise between the nuclear-armed neighbours in the wake of a deadly attack on tourists in the disputed Kashmir region.

The United States is stepping up pressure on India and Pakistan to avoid conflict in Kashmir after a tourist massacre in an Indian-administered area of the divided territory last week.

Pakistan has test-fired a ballistic missile as tensions with India have surged over last month's deadly attack on tourists in the disputed Kashmir region.