Sharing water post Indus Waters Treaty: The road ahead for India, Pakistan

International Relations & Transboundary Water Disputes · 2 September 2026 · Based on Indian Express (original report)

Must read — 2 past UPSC questions on this theme (Mains GS-1 2016, Mains GS-1 2026).

2-minute summary

The long-standing Indus Waters Treaty (IWT) dispute between India and Pakistan has escalated following recent rulings by the Permanent Court of Arbitration (PCA). The PCA ruled that India's unilateral decision to put the treaty in 'abeyance' is impermissible under international law and directed India to halt construction on the Ratle Hydroelectric Project. India has categorically rejected these awards, maintaining that the PCA was illegally constituted by the World Bank in violation of the treaty's provisions, which do not allow parallel dispute resolution mechanisms (a Neutral Expert process was already active). Consequently, India has boycotted the PCA proceedings. While Pakistan intends to leverage these rulings at international forums like the UN Security Council to build a narrative against India, India remains focused on fast-tracking its infrastructure projects on the Western rivers (Indus, Jhelum, Chenab) to utilize its permitted share. India's stance is that the treaty is practically non-functional due to Pakistan's continuous obstructionism and support for cross-border terrorism, signaling a push towards either a strictly bilateral renegotiation or a complete deadlock.

Why it's in the news

The Permanent Court of Arbitration (PCA) has ruled against India, declaring its decision to put the Indus Waters Treaty in 'abeyance' invalid and ordering a halt to the Ratle Hydroelectric Project. India has rejected the ruling, calling the PCA illegally constituted due to the activation of parallel dispute resolution mechanisms.

Facts to remember

• The Indus Waters Treaty was signed in 1960 by Indian Prime Minister Jawaharlal Nehru and Pakistani President Ayub Khan.
• Under the Indus Waters Treaty, India has unrestricted control over the three Eastern rivers while the three Western rivers are allocated to Pakistan.
• The Permanent Court of Arbitration is an independent intergovernmental organization established in 1899 and headquartered in The Hague.
• The Indus Waters Treaty outlines a graded three-tier dispute resolution mechanism consisting of the Permanent Indus Commission, a Neutral Expert, and a Court of Arbitration.

Background and context

Signed in 1960 by Indian Prime Minister Jawaharlal Nehru and Pakistani President Ayub Khan, brokered by the World Bank, the Indus Waters Treaty (IWT) governs the sharing of six transboundary rivers. Under the treaty, India has unrestricted control over the three Eastern rivers (Sutlej, Beas, Ravi), while the three Western rivers (Indus, Jhelum, Chenab) are allocated to Pakistan. India is permitted limited, non-consumptive agricultural and run-of-the-river power generation uses on the Western rivers. The treaty outlines a graded three-tier dispute resolution mechanism: the Permanent Indus Commission (bilateral), a Neutral Expert (for technical differences), and a Court of Arbitration (for legal disputes). The current conflict intensified when Pakistan objected to India's Kishanganga (Jhelum tributary) and Ratle (Chenab) hydroelectric projects, initiating parallel dispute pathways through both a Neutral Expert and the PCA, which India argues violates the treaty's sequential resolution framework.

Constitutional provisions

• Article 253 — Empowers Parliament to make laws for the whole or any part of the territory of India for implementing any treaty, agreement, or convention with any other country.
• Seventh Schedule (Union List - Entry 14) — Deals with entering into treaties and agreements with foreign countries and implementing of treaties, agreements, and conventions with foreign countries.

Committees and reports

• Parliamentary Standing Committee on Water Resources (Standing Committee Report on Flood Management, Border Areas Programme and Water Resources) — Recommended renegotiating the Indus Waters Treaty to address climate change, environmental degradation, and the altered flow of rivers, urging India to utilize its full water potential under the treaty.

Government schemes

• Prime Minister's Development Package (PMDP) for Jammu & Kashmir — Funds major hydroelectric infrastructure projects in J&K, including the Ratle and Kiru projects, aimed at utilizing India's permitted share of the Western rivers.

International organisations

• World Bank — A signatory and facilitator of the Indus Waters Treaty (1960); responsible for appointing a Neutral Expert or facilitating the constitution of a Court of Arbitration in case of unresolved disputes.
• Permanent Court of Arbitration (PCA) — An independent intergovernmental organization established in 1899, headquartered in The Hague, which acts as the forum for the dispute resolution tribunal constituted under the IWT.

Previous UPSC questions on this theme

• Mains GS-1 2016 — Present an account of the Indus Water Treaty and examine its ecological, economic and political implications in the context of changing bilateral relations.
• Mains GS-1 2026 — "Water resources are both an asset and a source of conflict in South Asia." Examine this statement giving examples.

Mains practice: Analyze the structural challenges in the dispute resolution mechanism of the Indus Waters Treaty (IWT) and evaluate India's recent decision to put the treaty in 'abeyance'.

The Indus Waters Treaty (IWT) of 1960, long hailed as one of the world's most successful transboundary water treaties, is facing an existential crisis. The recent deadlock over the Kishanganga and Ratle hydroelectric projects highlights deep-seated structural flaws in its dispute resolution framework.

**Structural Challenges in the Dispute Resolution Mechanism:**

• **Parallel Dispute Pathways:** The treaty provides a graded mechanism: the Permanent Indus Commission (technical/bilateral), a Neutral Expert (technical differences), and a Court of Arbitration (legal disputes). However, it lacks clarity on whether these pathways are mutually exclusive. This allowed the World Bank to simultaneously appoint a Neutral Expert and constitute a Court of Arbitration (PCA) for the same dispute, leading to institutional overlap and conflicting jurisdictions.

• **Third-Party Mediation Vulnerabilities:** The involvement of external actors like the World Bank and the PCA has politicized technical engineering differences, allowing Pakistan to internationalize bilateral water issues rather than resolving them through mutual consensus.

• **Outdated Technical Parameters:** The 1960 treaty does not account for modern environmental flow requirements, climate change-induced glacier melt, or advanced run-of-the-river technology, leading to constant friction over design specifications.

**Evaluation of India's 'Abeyance' Decision:**

• **Strategic Leverage:** By putting the treaty in 'abeyance', India links water cooperation directly to Pakistan's state-sponsored cross-border terrorism, signaling that goodwill cannot be one-sided.

• **Sovereignty and Infrastructure Push:** It allows India to bypass Pakistan's procedural delays and accelerate critical infrastructure projects in Jammu & Kashmir (e.g., Ratle and Chenab-Beas diversion) to fully utilize its permitted water rights.

• **Diplomatic Risks:** Unilateral abeyance risks painting India as an unreliable partner in international law, which Pakistan is actively exploiting at forums like the UN Security Council.

**Conclusion:**

To resolve the impasse, India must balance its developmental needs in J&K with its international standing. Rather than abandoning the treaty, India should leverage its position to force a strictly bilateral, climate-resilient renegotiation of the IWT, eliminating third-party arbitration in favor of modern joint-basin management.

Prelims practice questions

Q1. With reference to the Indus Waters Treaty (1960), consider the following statements: 1. The waters of the Sutlej, Beas, and Ravi are allocated to India for unrestricted use. 2. India is permitted to build run-of-the-river hydroelectric projects on the Western rivers with unlimited storage capacity. 3. The World Bank is a direct signatory to the treaty. Which of the statements given above are correct?

1. 1 and 2 only
2. 1 and 3 only
3. 2 and 3 only
4. 1, 2 and 3

Answer: B. Statement 1 is correct: The treaty allocates the three Eastern rivers (Sutlej, Beas, Ravi) to India. Statement 2 is incorrect: While India can build run-of-the-river projects on the Western rivers, they are subject to strict design and storage limitations specified in the treaty's annexures. Statement 3 is correct: The World Bank (then the International Bank for Reconstruction and Development) is a signatory to the treaty, signing in a limited capacity to facilitate certain provisions.

Q2. The Ratle Hydroelectric Project, recently in the news due to bilateral disputes, is located on which of the following rivers?

1. Ravi
2. Indus
3. Jhelum
4. Chenab

Answer: D. The Ratle Hydroelectric Plant is a run-of-the-river power station currently under construction on the Chenab River in the Kishtwar district of Jammu and Kashmir.

Q3. Consider the following statements regarding the Permanent Court of Arbitration (PCA): 1. It is an official organ of the United Nations. 2. It was established by the Convention for the Pacific Settlement of International Disputes during the First Hague Peace Conference. 3. Its rulings are legally binding on the parties, but it has no independent mechanism to enforce its decisions. Which of the statements given above are correct?

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2 and 3

Answer: B. Statement 1 is incorrect: The PCA is not a UN agency, though it is an official UN observer. It is an independent intergovernmental organization. Statement 2 is correct: It was established in 1899 during the first Hague Peace Conference. Statement 3 is correct: Its decisions (awards) are binding on the parties involved, but the PCA has no executive power or military force to enforce its rulings.

Revision flashcards

• Which rivers are designated as 'Eastern Rivers' under the Indus Waters Treaty (1960), and who has exclusive rights over them? Sutlej, Beas, and Ravi. India has exclusive, unrestricted rights over their waters.
• What are the three tiers of the Indus Waters Treaty's dispute resolution mechanism? 1. Permanent Indus Commission (bilateral technical talks) 2. Neutral Expert (for technical differences) 3. Court of Arbitration (for legal disputes)
• Why did India boycott the Permanent Court of Arbitration (PCA) proceedings initiated by Pakistan? India argued the PCA was illegally constituted because a Neutral Expert process was already active for the same dispute, and the treaty does not allow parallel dispute resolution processes.
• On which river is the Kishanganga Hydroelectric Project located, and which river basin does it belong to? It is located on the Kishanganga River, a major tributary of the Jhelum River (Western Rivers basin).
• What is India's condition for reviving the Indus Waters Treaty from its current state of 'abeyance'? India has stated that the treaty will remain in abeyance until Pakistan stops supporting cross-border terrorism, alongside a demand to renegotiate the treaty bilaterally.