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Picture Courtesy:  TIMESOFINDIA

Context:

India rejected a Court of Arbitration ruling on the Indus Waters Treaty.

About Indus Waters Treaty

Signed in 1960 with the World Bank as a guarantor, the IWT governs the sharing of waters from the Indus River system between India and Pakistan.

Division of Rivers => The treaty allocates the waters of the three eastern rivers—Sutlej, Beas, and Ravi—to India for unrestricted use. The waters of the three western rivers—Indus, Jhelum, and Chenab—are allocated to Pakistan.

India's Rights on Western Rivers => While the western rivers are for Pakistan, India is permitted to use their waters for domestic purposes, agriculture, and generating hydroelectric power, provided the projects adhere to specific design and operational criteria.

Dispute Resolution Mechanism => The IWT has a structured, three-tiered mechanism for resolving disagreements:

1. Permanent Indus Commission (PIC) => The first level of resolution involves the Commissioners from both countries meeting regularly to address technical issues.
2. Neutral Expert => If the PIC cannot resolve a "difference," either side can request the World Bank to appoint a Neutral Expert to decide on technical matters.
3. Court of Arbitration (CoA) => For "disputes" involving legal interpretations of the treaty, a seven-member Court of Arbitration can be formed.

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The current conflict originates from differing interpretations of this graded mechanism. India insists on following the sequence, starting with a Neutral Expert for what it considers technical issues. Pakistan, however, has often sought to directly approach the Court of Arbitration.

Recent Developments

India has formally rejected a recent "supplemental award" from the Hague-based Court of Arbitration, which asserted its jurisdiction over the dispute. The Ministry of External Affairs has labeled the court "illegally constituted" and its proceedings a "charade."  

Following a terror attack in Pahalgam on April 22, 2025, India put its participation in the IWT in "abeyance." New Delhi has stated that the treaty will remain suspended until Pakistan takes credible and irrevocable action to end cross-border terrorism.

Pakistan has urged India to resume the normal functioning of the treaty, arguing that the CoA's ruling confirms the treaty's validity and that India cannot unilaterally suspend it.

Way Forward

Resume Commission-Level Talks => Resume the meetings of the Permanent Indus Commission (PIC) is crucial for the day-to-day management of the treaty and for maintaining a channel of communication, even amidst political tensions.

Structured Dialogue on Modernization => India should continue to press for a comprehensive review of the IWT, as it has formally requested. This dialogue should not be about scrapping the treaty, but about modernizing it to reflect current realities.

Delink Water from Terrorism => India's stance linking the treaty's suspension to cross-border terrorism sends a strong political signal, however, a long-term resolution requires delinking the technical and humanitarian aspects of water sharing from political disputes. This can be a phased process, with a resumption of treaty obligations tied to concrete counter-terrorism actions by Pakistan.

Incorporate Climate Change => The IWT, signed in 1960, does not account for the impact of climate change on river flows, glacier melt, and water availability. Any review must incorporate provisions for joint climate impact assessments and data sharing to manage the shared water resources sustainably.

Improve the Dispute Resolution Mechanism => The current deadlock over parallel proceedings by a Neutral Expert and a Court of Arbitration highlights the need for a more streamlined and unambiguous dispute resolution process. The graded approach favored by India should be clearly codified to prevent future legal impasses.

Optimize Water Use => India should continue to fast-track the development of hydropower projects on the Western Rivers, fully exercising its rights under the treaty. This includes building storage capacity as permitted, which is crucial for the development of Jammu and Kashmir and for India's overall energy security.

Expand the Treaty's Scope => A modernized treaty could include provisions for environmental water flows to sustain the river ecosystem, which has been severely damaged. It could also consider including other basin countries, like Afghanistan and China, in a broader framework for regional water cooperation.

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Source: 

TIMESOFINDIA