India and Pakistan's troubled ties risked taking a dangerous new turn on Friday as New Delhi accused Islamabad of harbouring militants behind one of the deadliest attacks in three decades of bloodshed in Indian-administered Kashmir.At least 41 paramilitary troops were killed on Thursday as explosives packed in a van ripped through a convoy bringing 2,500 troopers back from leave not far from the main city Srinagar, police said.Local media reported that the Pakistan-based Jaish-e-Mohammed Islamist group claimed responsibility, with the vehicles driven by a known local militant, Aadil Ahmad alias Waqas Commando.Kashmir has been split between India and Pakistan since independence from Britain in 1947 with both nuclear-armed countries, which have fought three wars, claiming it as their own.Jaish-e-Mohammed is largely considered to be one of the most active Pakistan-backed insurgent groups fighting in bad ."After the attack, hundreds of government forces cordoned around 15 villages in the district the bomber came from and conducted house-to-house searches"The hope was that India and Pakistan will get back to talking after the Indian elections later this year. I think the hawks on both sides are going to make it very difficult for that to happen now."On Friday India announced it was withdrawing its Most Favoured Nation Status -- covering trade links -- on Pakistan.But beyond this, Modi has "no easy options", Manoj Joshi from the New Delhi based Observer Research Foundation think-tank told AFP.Military action could "escalate into something big", he said.Kashmir, where an armed conflict erupted in 1989, has seen increased violence in recent years"Diplomatic action against Pakistan is another option. But the United States is cosying up with Islamabad to seek an exit from Afghanistan. China has also deep interests in Pakistan."Kashmir, where an armed conflict erupted in 1989, has seen increased violence in recent years. Last year was the deadliest in a decade, with rights monitors saying almost 600 people died -- mostly civilians.