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NEWDELHI,Thursday (AFP) India announced Wednesday it would withdraw troops deployed for 10 months on its frontiers with Pakistan but said the build-up would remain in place on the borders of divided Kashmir.

In a major step toward de-escalating tensions in nuclear-armed South Asia, Defence Minister George Fernandes said the Indian forces had been "asked to redeploy from positions on the international border with Pakistan, without impairing their capacity to respond decisively to any emergency."

But he added: "There will be no lowering of the vigil in Jammu and Kashmir," giving the formal name for the Indian state.

He declined to give the manner or a time-frame for the withdrawal.

"Let there be no confusion. The troops will be redeployed," he said, adding the modalities of the pull-back would be worked out by the heads of India's million-plus army and the chiefs of navy and the airforce.

India has about 700,000 troops deployed at its shared borders with Pakistan. The standoff was triggered by a December 13 attack on India's parliament by gunmen New Delhi claims were sponsored by Islamabad.

The rivals have come to the brink of another war after a series of massacres in Kashmir, including attacks on a slum and an army residential camp in the state..

Meanwhile.the United States welcomed India's decision to withdraw some troops massed for 10 months on its frontiers with bitter rival Pakistan.

"We welcome India's announcement of a withdrawal of some of its troops from the border with Pakistan," said Julie Reside, a State Department spokeswoman.

India in May withdrew its warships from forward locations in the Arabian Sea and later lifted a ban on Pakistani planes flying over its territory, a move which has not been reciprocated by Islamabad.

India is believed to have some 200,000 soldiers on the Line of Control, the de facto border in Kashmir, including at the 6,900-metre (33,000-foot) Siachen Glacier in the Himalayas.

A chunk of the contingent is also tasked with internal security duties in the Kashmir Valley, the hub of Islamic militancy.

Military experts believe the redeployment would entail India pulling back its two strike corps, massed tanks and heavy artillery from the international border along the states of Gujarat, Punjab and Rajasthan states.

Fernandes also ruled out any resumption of dialogue with Pakistan "until cross-border terrorism stops completely."

"There is no question of discussing these issues," he said, when asked whether India would launch diplomatic initiatives to restore talks.

"For years we have been fighting cross-border terrorism on a daily basis. It will continue," he said.

Fernandes rejected suggestions the decision had been taken under pressure from the United States and said he did not believe Pakistan would reciprocate the gesture.

Earlier Wednesday, Indian foreign ministry spokeswoman Nirupama Rao reiterated that talks could resume only after Pakistan halted its alleged support to militancy in Kashmir.

"The climate for a dialogue has not been conductive and we believe the situation has not changed in this regard," Rao said.

The 90-minute security cabinet meeting decided to ease the standoff as the army had "achieved the objectives assigned to them," said a statement read by Fernandes.

A section of the military, meanwhile, welcomed the step to de-escalate military tensions at the borders, saying the move will lead to more pressure on rival Pakistan from the global community.

"International pressure will now mount on Pakistan forcing it to take reciprocatory measures to ease tensions," said former lieutenant general Afsir Karim, who until recently was a key member of India's National Security Council.

India's former director-general of military operations lieutinant general V. R. Raghavan said the withdrawal was well-timed.

"The purpose for which the troops were sent on alert was very effectively attended to in the first few months of their deployment in December and the forward deployment thereafter outlived its utility," the hugely-popular general said.

Captain Bharat Verma, editor of the policy-making military publication Indian Defence Review said: "Since there was no politico-military objective set, keeping the forces on high alert did not make any sense."

Economists estimate the 10-month standoff has cost India about 20 billion rupees, or 416 million dollars, or more than one million dollars a day.

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