BSG DIG RPS Jaswal said the encounter took place yesterday at Border Out Post Khalra in Amritsar sector.
He said BSF troops on duty in the area noticed suspicious movement near the fence and saw smugglers trying to throw something from Pakistan side into the Indian side.
When BSF troops challenged the smugglers, they started firing on them, he said, adding BSF troops then opened fire in self defence.
On search of the area, the bodies of two Indian smugglers were recovered, he said. A pistol, one magazine and seven rounds of ammunition were also found.
