UPDATE 2-Hundreds of thousands march for Kashmir's independence

(Recasts with higher number of protesters, adds quotes, details)

By Sheikh Mushtaq

SRINAGAR, India, Aug 22 (Reuters) - Waving green Islamic flags and shouting "we want freedom", hundreds of thousands of Muslims marched peacefully in Indian Kashmir's main city on Friday, resuming some of the biggest protests in two decades against Indian rule.

Hundreds of trucks and buses brought the protesters, many of them sitting on roofs and hanging out of windows, for an independence rally addressed by separatist leaders.

"There is no God but Allah" and "Indian forces go back", the protesters shouted.

What began as a dispute over land for Hindu pilgrims visiting a shrine in Kashmir snowballed into full-scale anti-India protests this month, boosting separatists who want India's only Muslim-majority region to secede.

Police and soldiers dressed in battle gear patrolled the streets as about 350,000 protesters arrived from nearby towns and villages, officials said.

"Today's rally is a referendum that Kashmiris want their inalienable right to self-determination," Mirwaiz Umar Farooq, chairman of All Parties Hurriyat (Freedom) Conference, said in his address to the crowd.

Thousands of people lined both sides of the road cheering protesters and offering them food, water and juice.