Indus Waters Treaty
The Indus Waters Treaty, brokered by World Bank, was signed by the then-Indian Prime Minister Jawaharlal Nehru and Pakistani President Ayub Khan in 1960.
• It administers how Indus River and its tributaries would be utilized.
• The Treaty allocates the Western Rivers (Indus, Jhelum, Chenab) to Pakistan and the Eastern Rivers (Ravi, Beas, Sutlej) to India. At the same time, the Treaty allows each country certain uses on the rivers allocated to the other.
• However, India is allowed to use 20% of western river waters for irrigation, navigation, non-consumptive power-generation, and transportation.
• Exchange of information about the rivers through Permanent Indus Commission – comprising of representatives from both India and Pakistan.
• Disputes have to be referred to seven-member arbitral tribunal called “Court of Arbitration”.
Drawbacks of Indus Water Treaty
• Division of water during the periods of shortage in river water flow.
• The treaty gives more waters to lower riparian state (Pakistan) and less waters to India.
• Treaty is criticised being highly technical which leads to far ranging and contradictory interpretations.
• The domestic political situation between India and Pakistan is affecting the performance of treaty.
Issues in the Indus Water Treaty
• The validity of the Indus water treaty was questioned by some critics as at the time of the signing of treaty India was a republic and the constitutional head was the President but the treaty was signed by the then Prime Minister Jawaharlal Nehru.
• The biggest dissatisfaction from the Indus Water Treaty is that it prevents India to build storage systems on western rivers. Even though the treaty has provisions that under certain exceptional circumstances storage systems can be built, India complains that Pakistan deliberately stops any such effort due to the politicostrategic rivalry between the two. The matter is further complicated by the fact that the western rivers lie in the region of Jammu and Kashmir, which has been a subject of the tussle between the two countries since partition.
• There are disputes on various projects such as Salal hydroelectric project, Tulbul Project, the Kishenganga project and Ratle project. Pakistan has asked to set up Court of arbitration for addressing its concerns regarding designs of hydroelectric project, which delays project implementation for India and causes cost and time overruns.
Options For India
It has been suggested by some geo-strategic experts that India should either revisit or abrogate the treaty as it would be the easiest way to punish Pakistan which refuses to control terrorism emanating from its soil. However, this suggestion is fraught with dangers, according to experts.
Many political commentators in India claim that the treaty is too one-sided, hence it requires introspection. Brahma Chellaney, a geo-strategist says that the Indus Waters Treaty is the most generous treaty ever signed.
Abrogation of the Treaty
• A devastating militant assault in Pahalgam on April 2025, Kashmir, killed 26 civilians, primarily tourists. India attributed it to cross-border terrorism and held Pakistan responsible.
• The Cabinet Committee on Security (CCS), chaired by PM Modi, announced that the 1960 Indus Waters Treaty would be held “in abeyance with immediate effect,” pending Pakistan’s "credible and irrevocable" renunciation of terrorism
• In a firm escalation, Home Minister Amit Shah stated in June 2025 that India would never restore the Indus Waters Treaty, instead diverting treaty-allocated flows to its own state of Rajasthan via new canal projects.
• Following the treaty’s suspension, India undertook steps like halting Chenab River flows via the Baglihar Dam and off-season reservoir flushing at Salal and Baglihar projects—actions done without Pakistan’s notification in violation of treaty norms.
Stoppage of Waters
• India may face environmental damage as most of the tributaries of the river flow through earthquake-prone region.
• It would take years of work to build huge dams or reservoirs or canals to change the flow of water. This can also lead to floods and related disasters in the Indian territory.
Other Effects of Abrogating the Treaty
• This decision may further enrage the terrorist elements in Pakistan, making them intensify their attacks against India. Even the construction works for diverting the flow of water would be prone to terror attacks.
• Water has become a new rallying cry for jihadist elements in Pakistan to inflame opinion against India.
• Abrogating the treaty will harm India’s global image and we can lose moral high ground vis a vis Pakistan.
• Convincing China for water sharing agreements and data sharing can be an uphill task, given Pakistan-China [friendliness].
Modification of Indus Water Treaty
New Delhi has formally issued a notice to Islamabad requesting changes to the more than sixty-year-old Indus Waters Treaty (IWT). The Indian government stated that the notice comes after Pakistan's ongoing "intransigence" in enforcing the treaty, particularly regarding repeated objections to India's hydropower projects on its side of the border.
The notice cites Article XII(3) of the treaty, which allows for modifications to the treaty through a duly ratified agreement between the two countries.
Dispute redressal mechanism laid down under the Treaty
The dispute redressal mechanism provided under Article IX of the IWT is a graded mechanism. It’s a 3-level mechanism. So, whenever India plans to start a project, under the Indus Water Treaty, it has to inform Pakistan that it is planning to build a project.
Pakistan might oppose it and ask for more details. That would mean there is a question — and in case there is a question, that question has to be clarified between the two sides at the level of the Indus Commissioners.
If that difference is not resolved by them, then the level is raised. The question then becomes a difference. That difference is to be resolved by another set mechanism, which is the Neutral Expert. It is at this stage that the World Bank comes into the picture.
In case the Neutral Expert says that they are not able to resolve the difference, or that the issue needs an interpretation of the Treaty, then that difference becomes a dispute. It then goes to the third stage — the Court of Arbitration.
To sum up, it’s a very graded and sequential mechanism — first Commissioner, then Neutral Expert, and only then the Court of Arbitration.
Way forward
Indus water treaty is a perfect example to showcase the world about righteous [moral] nature of Indian state as it accepted for lower share of water under the treaty even while being an upper riparian state.
To resolve the water dispute political will from both the countries is important.
The technical aspects of the treaty should be answered through bilateral meetings and discussion involving experts from both the countries.
The global warming and climate change are melting the glaciers. Melting of Himalayan peaks will adversely impact Indus River system in the future. Therefore, both the countries should aim to reduce water wastage and develop sustainable river development plans.