At least 3,000 soldiers from China, Russia, Kazakhstan, Tajikistan, Kyrgyzstan, India and Pakistan participated in the drill.
The army chief's visit comes a week after protests against alleged molestation of a girl by a soldier in Handwara and subsequent firing by security forces that left three persons dead.
Commissioned into the 5th Gorkha Rifles regiment, he has had an illustrious military career spanning 36 years during which he held several prestigious command, staff and instructional appointments
Gen Singh also discussed with Mehbooba the security arrangements for the by-polls to Anantnag assembly constituency from where the chief minister is contesting, the spokesman said. The polling will take place on June 22.
The terrorists are holed up inside the multi-storeyed government complex of Entrepreneurship Development Institute on the Srinagar-Jammu National Highway.
The army chief also complimented the troops on ground for showing maximum restraint even in the face of grave provocation.
He said there has been a spurt in infiltration attempts from across the LoC, but the army foiled most of these bids as is evident from the encounters taking place near the LoC.
This is the first deal for artillery guns since the Bofors scandal in 1980s.
Defence sources had said possible 'action plan' was also discussed about how the Army can respond to the attack.
The Indian Army on Monday mourned the demise of two young officers in the ongoing encounter with terrorists at the Entrepreneurship Development Institute in Pampore, Jammu and Kashmir.
'This is what we train for: That one chance to deliver a blow so lethal that the enemy will constantly think about it when planning any misadventure.'