Amreen, a first time mother, gave birth to a male child while on her way back to Gutlibagh, 12 kilometres from the Ganderbal district headquarter, the sources said.
They said Amreen had gone to see the gynaecologist at the hospital in the morning but was turned back by the doctor saying her due date for delivery was still some time away.
After delivering the baby in the taxi, the mother and the infant were taken back to the Ganderbal hospital. Both of them were reported to be stable and out of danger, the sources said.
Block Medical Officer Mehmooda Kar has ordered an inquiry into the incident following a public outcry against the "negligent" approach of the gynaecologist. Chief Medical Officer Dildar Mir said he is inquiring into the incident as he was away in a meeting with the Governor at the time of the incident.