JAMMU, India/ISLAMABAD, May 9 (Reuters) - Blasts rang out across Indian Kashmir and the Sikh holy city of Amritsar in neighbouring Punjab state late on Friday, with the Indian military saying it was shooting down drones in the worst fighting with Pakistan in nearly three decades.

The explosions in Amritsar - the first heard there in the three-day-old conflict between the nuclear-armed neighbours - could mark a further expansion in the hostilities that have alarmed world powers.

There was no immediate comment from Pakistan. It had dismissed Indian accusations that it launched attacks on the same area on Thursday night. The old foes have been clashing since India struck several areas that it described as “terrorist infrastructure” in Pakistan on Wednesday in retaliation for a deadly attack on Hindu tourists in Indian Kashmir last month.