India says it is reviewing future ties with archrival Pakistan in the light of the "inhuman killing" of two of its soldiers by Pakistani troops in disputed Kashmir early this month.

Prime Minister Manmohan Singh says India wants to have friendly ties with Pakistan, but this was not possible without a similar effort by Islamabad.

Singh told a governing Congress party meeting Sunday that the government "will take future steps after a careful review of the situation."

Three Pakistani soldiers and two Indian soldiers died in the worst bout of fighting in Kashmir since a cease-fire accord was signed by the countries in 2003.

India says one of its soldiers was beheaded, a charge denied by Pakistan.