The injured man -- a convicted murderer named Sanaullah Ranjay -- was assaulted early Friday in the northern city of Jammu, a day after India's home ministry ordered stepped-up security for jailed Pakistanis.
The attack came after Indian prisoner Sarabjit Singh, convicted in Pakistan for spying and deadly bombings, died on Thursday following a savage beating in a Lahore prison, sparking a furious response from Indian politicians.
The apparent tit-for-tat jail violence has strained relations between the neighbours.
The crowds chanted slogans against India and called for "jihad" to force Indian troops out of Kashmir.
Meanwhile, the authorities in Pakistani administered Kashmir announced a day of morning to protest the attack.
"We will observed a day of mourning on Monday and will demonstrate in front of the United Nations office to register our protest against (the) attack on Ranjay," Chaudhary Abdul Majeed, Prime Minister of Pakistani administered Kashmir, said in a statement.
"We will also stage rallies in Indian and Pakistani Kashmir and in all major cities," he said.
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