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Indian premier Manmohan Singh [C] makes his first visit to Jammu and Kashmir since coming to power in May. He addressed a rally of about 8,000 people in the summer capital, Srinagar.

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Coinciding with his visit was the start of a withdrawal of some Indian troops from the region, which is claimed by both India and Pakistan.

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Mr Singh spoke to the crowd from behind a bullet-proof screen to prevent attacks by separatists. Mr Singh also announced a $5bn development package for the region.

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Some in the crowd shouted demands for more jobs. Mr Singh pledged to generate employment and rejuvenate the farm sector.

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An audience member waves a flag of the People's Democratic Party in Kashmir. Mr Singh said he had a dream of building a new Kashmir - a symbol of peace and hope.

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But ahead of his speech, Indian troops fought a two-hour gun battle with militants in Srinagar, shooting two dead.

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Kashmiris watch the police operation. More than 40,000 people have died in the disputed region since an armed insurgency began in 1989.