Infiltration into Jammu and Kashmir significantly declined in 2004 due to the fence put up by India along the Line of Control and an effective security mechanism, the US State Department has said.

The department made this assessment in its annual "Country Reports on Terrorism 2004" released on Wednesday.

First Look: Is peace returning to Kashmir 

It said Indian security forces were increasingly effective, particularly in Kashmir.

The report noted a significant decline in infiltration from the Pakistan-occupied-Kashmir during 2004, attributing the drop in large part to the fence India constructed during the year-long ceasefire in Jammu and Kashmir, the report said.

More than 500 civilians were killed in the attacks and militant outfits such as Lashkar e-Tayiba and Jaish-e-Mohammed claimed responsibility for the strikes on prominent Indian politicians, it said.

Alse see: The Road to Peace