INDUS WATER TREATY : HISTORY & SIGNIFICANCE

26th April, 2025

Recent Headlines:

The Indian Prime Minister presided over a Cabinet Committee on Security (CCS) meeting in New Delhi on April 23, 2025, following a terror attack in Pahalgam that killed 26 people.  Several key decisions were reached during this meeting to handle the situation and respond to Pakistan's role in cross-border terrorism.
India and Pakistan signed the Indus Waters Treaty (IWT) in 1960 to amicably partition the Indus River system.  Despite difficulties, it is a rare Asian example of water sharing, with Pakistan receiving over 80% of the flow.  Kanwal Sibal, the current Chancellor of Jawaharlal Nehru University (JNU) and a former Indian Ambassador, recently revisited it, emphasising its long-term significance in the complex relationship.

What is the Indus Water Treaty?

  • In 1947, the partition divided the Indus River system between India and Pakistan.
  • Both parties relied on water from the Indus River basin.
  • The Inter-Dominion Accord was adopted in 1948.
  • India was obligated to supply water to Pakistan in exchange for annual payments.
  • The agreement collapsed due to the inability of both countries to reach a consensus on its meaning.
  • In 1951, both nations submitted applications to the World Bank for financing irrigation projects on the Indus System.
  • The World Bank subsequently proposed to mediate the water-sharing conflict.
  • Consequently, in 1960, the Indus Water Treaty (IWT) was executed by former Prime Minister Jawaharlal Nehru and then-President of Pakistan, Ayub Khan.
  • W.A.B. Iliff, the former World Bank Vice President, also endorsed the Indus Water Treaty.

How does water sharing work?

The treaty primarily separated the six major rivers of the Indus system:

India took primary control of the three eastern rivers:

  • Ravi, Beas, and Sutlej rivers.

Pakistan gained primary control of the three western rivers:

  • Indus, Chenab, and Jhelum
  • Now, it's not quite so straightforward. India is still allowed to use some water from the western rivers for essential home requirements, agricultural, and energy generation, but only in ways that do not severely impede water flow to Pakistan.
  • Pakistan receives the lion's share (about 80%) of total water, with India receiving approximately 20%.
  • To handle issues, they established a permanent commission (the Permanent Indus Commission) comprised of representatives from both countries. Consider it a dedicated team to discuss challenges and develop solutions.
  • They also promised to do their utmost not to cause flood damage to each other when constructing dams or flood defences.

Key Provisions of Indus Water Treaty

Water Sharing

IWT outlined how water from the six rivers would be distributed between India and Pakistan.

It granted Pakistan full access to the three western rivers (the Indus, Chenab, and Jhelum), with the exception of certain non-consumptive, agricultural, and household uses by India.

It granted India full access to the three eastern rivers (Ravi, Beas, and Sutlej).

This meant that Pakistan received 80% of the water, leaving India with 20%.

Annexure C & D

  • Though Pakistan holds rights to the waters of Jhelum, Chenab, and Indus, but:
  • Annexure C of the IWT gives India specific agricultural applications.
  • Annexure D allows India to construct 'run of the river' hydropower plants (those that do not require live water storage).
  • However, IWT gives design specifications for India to follow when developing HEPs.
  • India must share the project's design and any changes made to it with Pakistan.
  • Pakistan can file any complaints within three months of receipt.
  • For conservation and flood management objectives, IWT also enabled India to establish a minimum storage level on western rivers.

Permanent Indus Commission

  • The treaty also requires both countries to establish a Permanent Indus Commission comprised of permanent commissioners from both sides.
  • It serves as the initial point for conflict resolution.
  • It should meet at least once every year.

Dispute Settlement Mechanism

  • The IWT also offers a three-step graded conflict resolution procedure.
  • First Step: Disputes can be handled at the Permanent Commission or at the intergovernmental level.
  • Second Step: For unresolved disagreements, any party may approach the World Bank to appoint a Neutral Expert (NE) to conclude.
  • Third Step: If either party is dissatisfied with NE's judgement or if there are "disputes" regarding the interpretation of the treaty, the subject can be brought to a Court of Arbitration.

India's stance on dispute resolution

  • India has refrained from participating in the proceedings before the Permanent CoA.
  • However, India has been participating in the Neutral Expert proceedings.
  • Reason: India claims Pakistan violated the IWT's dispute settlement process.
  • India claims that in 2015, Pakistan requested the appointment of a neutral expert. However, later in 2016, Pakistan modified its plea, requesting that the CoA investigate the problem.
  • According to India, no provision in the IWT addresses such concurrent considerations on the same topics.
  • In July 2023, the Permanent CoA dismissed India's objections and confirmed its competence to decide the case.
  • However, India has maintained that it will not join the Pakistan-initiated proceedings at the CoA because a Neutral Expert is already investigating the matter under the framework of the IWT.

Latest News on the Indus Water Treaty

In a dramatic event with far-reaching consequences for India-Pakistan ties, India has suspended the Indus Water Treaty (IWT).  According to numerous accounts, the action comes after a fatal militant strike in Indian-held Kashmir on April 22, 2025, for which India has accused Pakistan explicitly.

Reason for Suspension: India has openly linked the suspension to Pakistan's suspected backing for cross-border terrorism.  The deal will be suspended until Pakistan "credibly and irrevocably abjures its support for cross-border terrorism."Immediate Effect: The suspension is effective as of April 23, 2025.Impact on Water Flow: This action may allow India to stop water flow from the Indus River and its five tributaries (Jhelum, Chenab, Ravi, Beas, and Sutlej into Pakistan.  These tributaries are an important source of water for Pakistan, mainly for irrigation and feeding its vast population.Other Actions Taken by India: Along with the suspension of the IWT, India has taken the following measures:Downgrading Diplomatic Ties: Staff strength at both countries' High Commissions will be reduced from 55 to 30 by May 1, 2025.Diplomatic expulsion: All defence, naval, military, and air advisors in the Pakistani High Commission in New Delhi have been declared persona non grata and given one week to leave.  India will also withdraw its military attachés from Islamabad.Closure of Attari Border: The Attari Integrated Check Post has been closed with immediate effect, except those with valid endorsements who crossed before May 1, 2025.SAARC Visa Ban: Travel under the SAARC Visa Exemption (SVE) policy has been revoked for all Pakistani citizens, and current visas have been cancelled.  Those currently in India under this arrangement have 48 hours to leave.

India-Pak Indus Disputes : Timeline

1948: India cuts off supply to most canals leading to Pakistan. However, it is eventually restored.

1951: Pakistan accuses India of disconnecting water supply to many of its communities.

1954: The World Bank develops a water-sharing formula for two countries.

1960: The Indus Waters Treaty was signed.

1970: India began developing hydroelectric plants in Kashmir. Pakistan expressed worry.

1984: Pakistan opposes to India's construction of the Tulbul barrage on the Jhelum River. India ends it unilaterally.

2007: Pakistan expresses alarm over the Kishanganga hydroelectric plant.

2008: Lashkar-e-Taiba launches an anti-India campaign. Its chief, Hafiz Saeed, accuses India of water terrorism.

2010: Pakistan accuses India of repeatedly cutting off its water supplies.

2016: India reviews the operation of the Indus Waters Treaty, which is linked to cross-border terrorism (Uri attack).

Challenges of IWT

    1. Pakistan opposes Indian projects: Pakistan routinely rejects Indian projects such as the Kishanganga Hydroelectric Project on the Jhelum River and the Ratle Hydroelectric Project on the Chenab River, citing concerns about their compliance with the treaty's technological criteria.
    2. Environmental Concerns: The rapid melting of Himalayan glaciers due to climate change is a difficulty in altering river flow in the Indus basin.
    3. India's Growing Needs: With a growing population and agricultural sector, India is reevaluating its water rights to fulfil existing irrigation and electrical demands.
  • Security and Political Pressure: 
  • Strategic use: Water has been viewed as a strategic asset, with Indian officials stating that "blood and water cannot flow together" to emphasise water's role in geopolitics.
  • Terrorism Concerns: India has linked water concerns to cross-border terrorism from Pakistan, implying that treaty compliance should take security into account, particularly in light of instances such as the 2016 Uri attack.

What Should be the Way Forward?

  1. While the IWT cannot be repealed, it does have a dispute resolution mechanism: Article XI, along with Annexures F and G, which outline processes for filing grievances before the Permanent Indus Commission, then a Neutral Expert, and finally a court of arbitrators.
  2. The Brisbane Declaration and the 2013 Permanent Court of Arbitration ruling on Kishanganga argue that ecological perspectives must include Environmental Flows (EF) to sustain Indus Valley ecosystems.
  3. Strategies for managing climate change must be created. India should consider using climate change as a 'change in circumstances' to start the discourse about renegotiating the IWT.
  4. A World Bank-supervised, legally binding data-sharing mechanism should be established to track water quality and flow changes. Such calculations would improve the accuracy of one side's reliance on the other while sharing the waters of these rivers.
  5. To ensure sustainable water usage, treaty provisions must be linked with the 1997 UN Watercourses Convention and the 2004 Berlin Rules on Water Resources.
  6. As the Standing Committee on Water Resources advised, canal systems in Punjab and Rajasthan should be renovated to boost their water carrying capacity. Also, India should take steps to utilise its entitlement to Western River water fully.
  7. Some experts have recommended that India can stop Permanent Commission meetings if Pakistan escalates hostilities in the future. If the first stage of dispute resolution is ineffective, the second two steps of the three-tier dispute resolution process do not take effect.
  8. Rather than withdrawing, India might highlight Pakistan's terrorist-related breaches as violations of the treaty's spirit of peaceful cooperation.

Conclusion

Despite its resilience, the Indus Waters Treaty is under strain due to geopolitical tensions caused by Pakistan's backing for cross-border terrorism, climate stress, and internal water requirements. While India has the freedom to reconsider its stance, total suspension would present considerable strategic and legal issues. The best road forward is a balanced approach that includes strong diplomacy, technical readiness, and treaty modernisation.


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