One terrorist was caught alive and four were killed by security forces near the Line of Control in Kashmir's Kupwara this morning.
"It's a big achievement to catch a terrorist alive. The truth about Pakistan will come to the fore," said minister of state for home Kiren Rijiju.
A defence officer told the Press Trust of India that the operation took place in the Nowgam sector and "all the terrorists were foreign nationals".
"We have got one of them alive and expect some vital information from him," he said.
Reports say the operation is still on.
Meanwhile, the restrictions that were put in place following protests over the killing of Hizbul Mujahideen commander Burhan Muzaffar Wani on 9 July were lifted today from Srinagar.
According to the district magistrate Srinagar, Dr Farooq Ahmad Lone, there will be no restrictions in any part of Srinagar today.
However, curfew continued in Pulwama and Shopian districts of Jammu and Kashmir.
Mobile internet services were restored in Jammu region after remaining suspended for 17 days in view of the protests in the Kashmir valley.
Deputy commissioner police, Jammu, Simrandeep Singh said the orders have been issued to restore mobile internet services with immediate effect.
Fearing a backlash in Jammu region after the start of protests in the valley, the authorities had decided to suspend mobile internet services across 10 districts of the region.
Meanwhile, the state government has asked the Kashmiris residing or studying outside the state to contact the deputy commissioners (DCs) of their native districts for any help.
Barring BSNL post-paid mobile connections and landlines with broadband connections, the authorities suspended mobile telephony and mobile internet services across the valley following protests.
With communication snapped, Kashmiris outside the state have been expressing concerns over their families' welfare with some students complaining that they were running out of money.
Union home minister Rajnath Singh visited the valley last week to take stock of the situation where he met various political leaders including Chief Minister Mehbooba Mufti.
Singh said, "The (Union) government will welcome any constructive suggestions on Kashmir. We want to build an emotional bond between the Centre and Kashmir and a dialogue is possible to resolve differences people may have."
However, indicating a hardening position on separatists, Singh asked Pakistan to ''change its mindset on Kashmir'' and stressed that ''terrorism in any form will not be tolerated''.