Junaid Ashraf Khan 'Sehrai' whose father is chairman of the separatist conglomerate Tehrek-e-Hurriyat, was killed in the encounter.
Pro-Pakistan leader Syed Ali Shah Geelani's death has brought to an end a chapter of anti-India and separatist politics in Kashmir.
If this trend continues, 2018 may end up as the worst year in terms of number of youths joining various terror groups, according to the officials.
Seven people including Altaf Ahmed Shah, the son-in-law of hardline separatist leader Syed Ali Shah Geelani, were arrested on Monday by the National Investigation Agency in connection with its probe into the funding of terror and subversive activities in the Kashmir Valley, officials said.
As many as 20 more youths have joined the terrorist groups in the month of May which included Rouf from Ganderbal, a fourth-semester student pursuing a diploma course in government polytechnic, the officials said.
There has been a steady rise in the number of youth taking up arms in the Valley since 2014 onwards as compared to 2011, 2012, and 2013.