The decision was later reversed following protests by Kashmiris who feared the move would turn the Muslim majority state into a Hindu one.
Shots were fired and people were taken to hospital, but the number of casualties is unclear.
People hoisted black flags in many parts of Srinagar on India's independence day.
Inside Story asks: can India and Pakistan ever put aside their differences, to resolve the thorny issue of Kashmir?Watch part one of this episodeWatch part two of this episodeThis episode of Inside Story aired on Sunday, August 17, 2008
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