Dhakad (28), a member of the 29th Rashtriya Rifles, was killed on April 1.
His elder brother Suresh Dhakad, who is also in the Army, lit the funeral pyre.
Army jawans gave a gun salute and played the 'last post' to bid adieu to Dhakad.
Madhya Pradesh minister of state for education Dipak Joshi and MP Manohar Utwal were present for the funeral which was attended by around 10,000 people.
One of the kin would be given a job and a memorial will be built for Dakad in the village, the minister added.
Joshi also said that the newly built community hall in the village will be named after Jageshwar.
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