Soldiers fired live bullets and shotgun pellets on protesters who helped rebels escape two separate sieges by Indian troops, authorities in India-administered Kashmir say.

Indian troops and police shot dead a civilian and wounded at least 70 protesters in clashes in India-administered Kashmir on Wednesday as protesters helped rebels escape two separate sieges by Indian soldiers, police and hospital authorities said.

Thousands of villagers poured onto roads on Wednesday as two suspected rebels fought a gun battle with Indian soldiers from inside a house in the Kulgam area of Kashmir Valley.

Protesters pelted Indian troops with stones to give the fighters cover to escape, they said.

Fifty people were taken to a local hospital after Indian forces fired shotgun pellets and live bullets to push the protesters back, witnesses and hospital officials told AFP news agency.