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A jawan suffered minor injuries in the exchange of fire.
A senior Border Security Force (BSF) officer said a group of militants entered into the Indian side along the international border in Ramgarh sector of Samba district and the movement was picked up by BSF troops.
A firefight broke out after BSF troops challenged them, he said, adding that in the initial phase of encounter a jawan suffered minor injuries.
The encounter has ended but combing operations are underway.