By Aftab Ahmed, Charlotte Greenfield and Shivam Patel JAMMU, India/ISLAMABAD (Reuters) -Blasts rang out across Indian Kashmir and the Sikh holy city of Amritsar in neighbouring Punjab state late on Friday,

India has threatened before, in other moments of rising tensions, to pull out of the Indus Waters Treaty, which both countries signed in 1960. If India follows through this time, it could restrict the flow of water that is used for most of Pakistan’s crop irrigation and human consumption. Agriculture represents one-fourth of the country’s economy.

On a third day of tit-for-tat exchanges, the Indian army said it had “repulsed” waves of Pakistani attacks using drones and other munitions overnight, and gave a “befitting reply”. Late Friday, an Indian defence source told AFP that drones had been sighted in the Indian-administered Kashmir areas of Jammu and Samba,