The two-day gunfight in Indian-controlled Kashmir ended Friday and death toll rose to 12, officials said.
"We have killed the fourth militant today and now gunfight has stopped," Jammu-based Indian military spokesman Lt Col Manish Mehta told Xinhua on telephone.
"In the two-day gunfight, five civilians, four militants were killed and three of our troopers also laid down their lives fighting these militants," the spokesman added.
The gunfight was going on at the time when Indian Prime Minister Narendra Modi reached Udhampur town to address an election rally.
Authorities had made adequate security measures in the town ahead of this high-profile visit and had sounded an alert in the wake of the ongoing fierce gunfight.Heavy security contingents were deployed in and around the town to ward off any eventuality.
The gunfight broke out Friday after heavily armed militants entered into an underground military bunker in Arnia sub sector, close to India-Pakistan border, about 45 km southwest of Jammu city, the winter capital of Indian-controlled Kashmir.
Following their entry, the militants engaged Indian military into a gunfight and killed their three troopers including a Junior Commissioned Officer, besides wounding four others.
The wounded troopers are undergoing treatment in hospitals.
Five civilians and three militants were also killed on Thursday.
Indian military Thursday evening rushed huge reinforcements and tanks to take on the fourth militant, reports said
Officials said the operation in the area was underway.
"Though firing has stopped but we are yet to call off the operation," Mehta said.
Last month, Arnia sector suffered because of Indian - Pakistani border skirmishes.
India's official broadcaster All India Radio (AIR) said the identity of the slain militants and their group affiliation was being ascertained.
Thursday's attack came at a time when prime ministers of India and Pakistan were attending a two-day 18th South Asian Association for Regional Cooperation (SAARC) summit at Nepali capital Kathmandu to boost trade in their regional neighborhood.
Militants challenging New Delhi's rule in the restive region are fighting guerrilla war with Indian troops since 1989. The gunfight between the militants and Indian troops takes place intermittently.
Kashmir, the Himalayan region divided between India and Pakistan, is claimed by both in full. Since their independence from Britain, the two countries have fought three wars, two exclusively over Kashmir.
Last month, deadly skirmishes took place between troops of India and Pakistan posted along the 720 km-long Line of Control ( LoC) and the 198 km-long International Border (IB) in Kashmir. The two sides suffered 21 casualties (nine on Indian side and 12 on Pakistani side) during the stand-off.