Two separatist militants were shot dead shortly before Singh's arrival in Srinigar, after a gunfight with security forces near the stadium where the prime minister was to address a rally, the BBC reported.
Senior Indian official Sanjeev Ranjan said the militants wanted to make the news and draw attention to their cause during the prime minister's visit.
Singh was due to visit Srinagar's historic Hazratbal Mosque and hold meetings with local leaders. Srinagar is the summer capital of Indian-administered Kashmir.
India announced Tuesday it would pull some of its troops out of Kashmir, which is also claimed by Pakistan, and about 1,000 were reportedly already withdrawn from the southern district of Anantnag as the prime minister arrived.
Kashmir Chief Minister Mufti Mohammed Sayeed described the pullout as a "big step" towards restoring normality in the state. India did not say how many soldiers it has in Kashmir, or how many it plans to withdraw.
India and Pakistan have fought two wars over Kashmir, but in January embarked on a peace process to try and resolve their differences.
Copyright 2004 by United Press International