LAHORE/MUZAFARRABAD, Pakistan/AMRITSAR, India - Residents across Pakistan and India rushed to stockpile foods and other essential supplies, while families living near the border fled to safer areas, as armed clashes between the nuclear-armed nations escalated on May 9.

India and Pakistan accused each other of launching new military attacks, using drones and artillery for the third day, in the worst fighting between the two countries in nearly three decades.

The conflict erupted after India struck multiple locations in Pakistan on May 7 that it said were "terrorist camps", in retaliation for a deadly attack on Hindu tourists in Indian Kashmir in April.

In the Indian state of Punjab, Mr Amanpreet Dhillon, 26, said many families in his village — just 13km from the border with Pakistan — have already sent women and children to safer areas.

"I am also contemplating it... I'm afraid my village could be next," he said.

In Indian-administered Kashmir's Uri district, residents said many fled overnight after several houses were struck by shelling, some taking shelter behind rocks or in bunkers.

"We have never seen such intense shelling in our life. The majority of the people fled the town and other villages as soon as shelling started last night with some taking shelter in underground bunkers," said Mr Bashir Ahmad, 45, in the town of Baramulla in Uri. "It was a nightmare for us."

In the Pakistani city of Lahore, which lies near the border, residents were shaken on Thursday by drones that Pakistan said were launched by India and were shot down in the city, setting off sirens and leading the US consulate to tell its staff to shelter in place.

Schools were closed on May 9 and residents and shopkeepers said Lahoris were stocking up on food, gas cylinders for cooking and medicine, prompting authorities to issue a notice warning businesses not to artificially increase prices.

"I have stocked grocery for a month: we got meat, flour, tea, oil lentils etc and also drew extra cash from bank," said Ms Aroosha Rameez, 34, a Lahore resident.

Mr Muhammad Asif, 35, said his pharmacy had seen an influx of customers.

"People in Lahore have started stocking medicines as well, which m...