India's Foreign Secretary Vijay Gokhale told reporters in New Delhi that Indian fighter jets targeted Jaish-e-Mohammad camps in a pre-emptive strike after intelligence indicated another attack was being planned.
Although there has been no official confirmation of the timeline, it would appear Indian jets entered Pakistani airspace following the incident.
He says that "one Indian pilot was arrested by troops on ground while two are in the area" on Wednesday.
According to DG ISPR one aircraft fell inside Azad Jammu Kashmir and the other fell inside Indian Occupied Kashmir.
India explained the unauthorised airstrikes from Pakistan's airspace by Islamabad's alleged "inability to act in order to destroy terrorist infrastructure", while the Pakistani Foreign Ministry has slammed the air strike as a violation of its territorial integrity and sovereignty. PAF shot down two Indian aircrafts inside Pakistani airspace.
Pakistan has therefore, taken strikes at non military target, avoiding human loss and collateral damage.
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India has also continued its crackdown on suspected militants operating in Kashmir, a mountainous region that both countries claim in full but rule in part.
Earlier, senior Indian police officer Munir Ahmed Khan said an Indian Air Force plane crashed in Indian-controlled sector of Kashmir.
"The Indian Army retaliated for effect and our focused fire resulted in severe destruction to five posts and number of casualties", the spokesman said.
The aerial attacks across the LoC are the first since a war between the two countries in 1971.
In Mumbai, India's financial capital, there was a visible increase in security levels for a city that has suffered numerous militant attacks in the past.