A delegation of business leaders from Pakistan-administered Kashmir has for the first time gone to the Indian-controlled side to discuss trade.
The week-long visit across the Line of Control that divides the two regions is part of efforts to open up new trade routes in the region later this month.
It is part of an effort to improve relations between India and Pakistan.
The two sides agreed last month to start trade across the Line of Control as part of a bid to boost confidence.
Meanwhile, officials said the Indian Prime Minister, Manmohan Singh, would be visiting Srinagar on Saturday to inaugurate the first ever train service in the Kashmir region.
The rail link will connect Baramullah town in the north with Qazigund in the south - a distance of 73 miles (117km).
The route is expected to be completed by next year.