Indus Waters Treaty: Suspension, India-Pakistan Relations and Key Issues

Subject: GS 2: International Relations

Context: India has said that the Indus Waters Treaty (1960) will remain suspended until Pakistan permanently and credibly stops supporting cross-border terrorism. 

• The statement came after Pakistan sought restoration of the treaty following the Pahalgam terror attack (2025) and Operation Sindoor. 

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About the Indus Waters Treaty (IWT)

• Historic Water-Sharing Agreement: Signed in 1960 between India and Pakistan, with the World Bank as a signatory facilitating the negotiations, making it one of the world’s longest-standing transboundary river treaties.
• River Allocation: The Eastern Rivers (Ravi, Beas, Sutlej) were allocated for India’s unrestricted use, while the Western Rivers (Indus, Jhelum and Chenab) were largely allocated to Pakistan, subject to specified Indian uses.
• India’s Permitted Rights: India can undertake run-of-the-river hydropower projects, irrigation, navigation and limited storage on Western Rivers within treaty-prescribed technical parameters.
• Institutional Mechanism: The treaty established the Permanent Indus Commission (PIC) for regular data sharing, inspections, technical cooperation and dispute prevention.
• Dispute Resolution Framework: Provides a graded mechanism involving the Permanent Indus Commission, Neutral Expert, and Court of Arbitration for resolving technical and legal disputes.

Why has India Kept the Treaty in Abeyance?

• Cross-Border Terrorism: India argues that the treaty was founded on the principles of goodwill and friendship, which Pakistan has consistently violated by supporting cross-border terrorism.
  • The Cabinet Committee on Security (CCS) placed the treaty in abeyance following the Pahalgam attack, linking water cooperation to national security concerns.
• Changing Ground Realities: India has highlighted that climate change, population growth, changing developmental needs and technological advancements have substantially altered the assumptions on which the treaty was negotiated.
• Repeated Treaty Disputes: Persistent disagreements over projects such as Kishanganga and Ratle Hydroelectric Projects, alongside Pakistan’s simultaneous use of multiple dispute resolution forums, have strained treaty implementation.
• National Security Priority: India maintains that “water and blood cannot flow together,” signalling that bilateral cooperation cannot continue independently of Pakistan’s actions on terrorism.

Implications of the Treaty Remaining in Abeyance

• Bilateral Relations: Suspension further deepens diplomatic tensions and reduces one of the few remaining institutional channels of India-Pakistan cooperation.
• Pakistan’s Water Concerns: Pakistan has repeatedly described restoration of the treaty as essential for its long-term water and agricultural security.
• India’s Strategic Leverage: The decision enhances India’s negotiating leverage while allowing greater flexibility in optimising permissible water utilisation within its territory.
• International Attention: The development has attracted global attention because the treaty has long been viewed as a resilient example of international river governance.
• Future Water Diplomacy: The episode highlights the growing linkage between national security, water security, climate change, and transboundary resource management.

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Conclusion

The Indus Waters Treaty has entered a new phase where water diplomacy is increasingly inseparable from national security, climate resilience and regional geopolitics. India’s decision to keep the treaty in abeyance reflects a shift towards integrating counter-terrorism, strategic interests and sustainable water governance into its neighbourhood policy.

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