Before the announcement, which is likely to set off unrest, India had flooded the disputed region with thousands of extra troops and cut off internet service.
More than 100 flights were canceled and ground transport disruptions are expected as protesters try to increase pressure on government after weeks of protests.
While North Korea test-fires barrages of missiles, two crucial American allies in Asia are locked in their own bitter battle, and the Trump administration is struggling with how to end the discord.