Ties between the two neighbours have been strained ever since the Jan 6 killing of a Pakistani soldier allegedly in firing by Indian troops.
Two days later, Pakistani soldiers brutally killed two Indian soldiers, including beheading one of them, on the LoC.
On Tuesday, Prime Minister Manmohan Singh said that there can be "no business as usual" with Pakistan following the brutal killing of two Indian soldiers.
Indian Army chief General Bikram Singh termed the killing of the Indian soldiers "an unpardonable act" and said his forces reserved the "right to retaliate".