The restive state is currently locked down after the former state of Jammu and Kashmir was stripped of its special status and divided into two federally administered territories.
Eid al-Adha will be celebrated in northern India on Monday (12th August), while southern India celebrated the festival on Sunday along with Saudi Arabia.
A spokesperson for the federal Ministry of Home Affairs said all government financial institutions and banks will remain open even on holidays and adequate cash will be replenished in ATMs on a regular basis. The spokesperson said in the release that all payments to its employees and pensioners will be made.
An adequate supply of vegetables, cooking gas, poultry and eggs have been ensured through mobile vans in all residential areas and six markets have been established in Srinagar, the summer capital. In addition, 250,000 sheep have been made available for sacrifice during the festival. The release said food grains and other essentials have been stocked for almost two months.
The government has also made arrangements for the hassle-free return of pilgrims after performing Hajj in Saudi Arabia, which began on the 9th of August.
The government claimed, shops are open today and life is normal in the Kashmir Valley. "Traffic is plying smoothly in Srinagar City and being regulated around the corner".
The erstwhile state has been on the edge since New Delhi abrogated Article 370 and Article 35A of the Constitution of India, which granted special status to Jammu and Kashmir. The government also divided the state into two federally administered regions.
Ahead of the unprecedented move, the government had clamped down prohibitory orders in Kashmir and taken all political leaders of regional parties into preventive custody.
India's move caused a diplomatic row between New Delhi and Islamabad and in response, Pakistan expelled the Indian envoy to the country, suspended trade, and communication links.
Kashmir has been a bone of contention between India and Pakistan since the countries gained freedom from British colonial rule in 1947. Both nations govern different parts of the region but claim it in its entirety. The rivals have also fought two wars over Kashmir.