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By Aftab Ahmed, Adnan Abidi and Saeed Shah JAMMU, India/ISLAMABAD (Reuters) -Blasts rang out across the Indian city of Jammu late on Thursday during what the government said was a Pakistani drone and missile attack on military stations around the Kashmir region on the second day of clashes between the nuclear-armed neighbours.

India has accused Pakistan of attacking three of its military bases with drones and missiles, a claim which has been denied by Islamabad. The Indian Army said it had foiled Pakistan's attempts to attack its bases in Jammu and Udhampur,

India has threatened before, in other moments of rising tensions, to pull out of the Indus Waters Treaty, which both countries signed in 1960. If India follows through this time, it could restrict the flow of water that is used for most of Pakistan’s crop irrigation and human consumption. Agriculture represents one-fourth of the country’s economy.

India and Pakistan’s latest military conflict has expanded, days after India carried out airstrikes in Pakistan that followed an attack by gunmen on tourists in India-controlled Kashmir last month