Air bases in Pakistan are reportedly at “war alert levels” while Indian Prime Minister Narendra Modi has given his military a “free hand” to attack.
India is also preparing to build 14,000 bunkers on the border with Pakistan as heavy clashes continue on the border that divides Indian and Pakistani territory in Kashmir.
The latest attacks, the first since a war in 1971, saw Pakistan air force today shoot down two Indian military jets after they crossed the frontier.
Pakistan claimed to have detained two pilots who were flying the warplanes – but later changed the figures to just one.
It came just 24 hours after Indian carried out an attack on what it says was a militant camp in Pakistan in revenge for a suicide bombing that killed 40 Indian troops in Kashmir.
A Pakistan-based group said it carried out the attack – the deadliest to take place during a three-decade insurgency against Indian rule in Kashmir.
India today demanded the release of the fighter pilot shot down by Pakistan warplanes after video emerged showing the pilot blindfolded with blood on his face.
The images were described by India as a “vulgar display of an injured personnel”.
Pakistan’s Prime Minister Imran Khan later called for urgent talks with Indian counterpart Narendra Modi to address the situation.
He said in a televised address that the two sides could not afford a miscalculation “given the weapons we have”.
“We should sit down and talk,” he said.
“If we let it happen, it will remain neither in my nor Narendra Modi’s control.
“Our action is just to let them know that just like they intruded into our territory, we are also capable of going into their territory,” he added.
Modi has yet to react but was meeting top security and intelligence officials to discuss the situation, reports in India said.
Indian Foreign Minister Sushma Swaraj said her country would act “with responsibility and restraint”.
“India does not wish to see further escalation of the situation,” she said, speaking from a meeting with Russian and Chinese foreign ministers in China.
The UK government also announced this afternoon that diplomatic efforts to resolve the crisis in Kashmir were continuing “round the clock”.
But it warned: “We should not underestimate the dangers in this situation”
Foreign Secretary Jeremy Hunt said: “You have two nuclear powers who have a long history of tension squaring up against each other and now the start of some kind of military conflict.
“It’s an extremely dangerous situation.”
He added: “It’s a full, round-the-clock, diplomatic effort to try and make sure we can avert the worst and end up with a peaceful resolution which we know both countries want.”