Davies was to be part of the delegation of MEPs who visited Kashmir on Tuesday, the first foreign delegation to visit the region after the August 5 revocation of special status.
"I am not prepared to take part in a PR stunt for the Modi government and pretend that all is well. It is very clear that democratic principles are being subverted in Kashmir, and the world needs to start taking notice," said Davies in a statement.
"I fear that this is not going to end well. Governments do not win the hearts and minds of people by taking away their freedoms and imposing military rule. The risk of a violent backlash is all too evident," he said.
According to reports, the invite to the MEPs was issued by an organisation called WESTT - Women's Economic & Social Think Tank.
In the invite to Davies, which is doing the rounds on social media, WESTT head Madi Sharma promises a "prestigious VIP meeting" with India's Prime Minister, in addition to the Kashmir trip.
On Monday, members of the European Parliament met Prime Minister Narendra Modi in Delhi during which he expressed hope that they have a fruitful visit to Jammu and Kashmir.
"Their visit to Jammu and Kashmir should give the delegation a better understanding of the cultural and religious diversity of the region of Jammu, Kashmir and Ladakh, apart from giving them a clear view of the development and government priorities of the region," a statement from the Prime Minister's Office said.
( With inputs from IANS )