Troops killed five separatist guerrillas in Manipur close to the border with Myanmar, officials said on Friday.
The rebels were killed when they attacked soldiers of the Assam Rifles while they were patrolling in a remote village on Thursday.
"These insurgents have their bases in neighbouring Myanmar and they operate from there," said Manipur's police chief, Y Joykumar.
More than 20 militant groups operate in the state, having little more than two million people, some demanding freedom, some more political autonomy.
Joykumar said these armed groups in Manipur do not have any ideology and their main aim is to extort money from civil population across the state.
"The insurgency in Manipur would be reduced by 80 percent if the border with Myanmar is effectively sealed," he said.
"The militants have been identified and they belong to People's Revolutionary Party of Kangleipak (PREPAK)," a military commander, who refused to be named, told Reuters on Friday.
Three pistols, two AK-47 rifles and several rounds of ammunition were recovered from the site of the encounter.
Thousands have died due to prolonged insurgency in Manipur in the past few decades.
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