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INDUS WATERS TREATY: PROVISIONS, CHALLENGES, WAY FORWARD

The Indus Waters Treaty, a World Bank-mediated pact, was signed in 1960. It allocates 80% of the Indus basin's water to Pakistan. India suspended the treaty in April 2025 after a terrorist attack, citing an outdated framework and Pakistan’s obstruction of projects. The path forward involves modernising the treaty to address current water and security challenges.

Description

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Picture Courtesy: NEWSARENAINDIA 

Context

The Indus Waters Treaty, a historically resilient water-sharing agreement between India and Pakistan, currently facing strain due to geopolitical tensions and evolving circumstances.

What is Indus Waters Treaty?

It is a water-sharing agreement between India and Pakistan signed in 1960, mediated by the World Bank.

It governs the use of the six rivers of the Indus River system. The treaty allocates:

  • Three "Eastern Rivers"—Sutlej, Beas, and Ravi—to India
  • Three "Western Rivers"—Indus, Jhelum, and Chenab—to Pakistan.

This division grants 80% of the water to Pakistan and 20% to India.

Article III (1) of the treaty obligates India to let the waters of the Western Rivers flow to Pakistan. However, India is permitted limited use for:

  • Domestic and agricultural purposes.
  • Generating hydroelectric power through "run-of-the-river" projects, which do not require large storage dams.

What are the Key Provisions of the Treaty?

River Allocation: India has unrestricted use of the Eastern Rivers. Pakistan controls the Western Rivers.

India's Rights on Western Rivers: India can use the Western Rivers for non-consumptive needs, including hydroelectric power generation, navigation, and fish culture.

Data Exchange: Treaty mandates a regular exchange of data between the two countries regarding river flows and water utilization.

Dispute Resolution: A three-step mechanism is in place:

  1. Permanent Indus Commission (PIC): First tier involves the PIC, with a commissioner from each nation, to resolve issues bilaterally. The commission must meet at least once a year.
  2. Neutral Expert: If the PIC fails, the World Bank can appoint a Neutral Expert to deliver a binding decision on technical disagreements.
  3. Court of Arbitration (CoA): For major disputes, a seven-member Court of Arbitration is formed to deliver a final verdict.

Recent developments

International principles on transboundary water sharing

Helsinki Rules (1966): Established the foundational concept of "equitable and reasonable utilization," asserting that every nation in a river basin is entitled to a fair share.

UN Watercourses Convention (1997): Codified principles: equitable and reasonable utilization, and the obligation to not cause harm to other watercourse states. It also mandates prior notification for new projects. (India, Pakistan, and China are non-signatories).

Helsinki Convention (1992): Focuses on water quality and ecology. It provides a legal framework to prevent and control cross-border pollution, based on the "polluter-pays principle."

Berlin Rules (2004): A modern, comprehensive update. It expands the scope to include groundwater, mandates environmental flows to protect ecosystems, and calls for public participation.

Limited Territorial Sovereignty: The core legal doctrine that a country's rights over the water in its territory are not absolute and are limited by its duty not to harm its neighbors.

Duty to Cooperate: The fundamental requirement for states to share data, establish joint management bodies, and negotiate in good faith to resolve disputes.

What are the issues with the Indus Waters Treaty (IWT)?

An Outdated Framework: Treaty is a rigid, 60-year-old document unfit for modern realities. It fails to address for increasing population growth, escalating water demand, and lacks any provision for adaptive strategies like basin-wide planning or environmental flows.

Climate Change: Accelerated glacial melt in the Himalayas creates unpredictable river flows, while environmental degradation has shrunk the Indus Delta, issues the treaty cannot address.

China’s Upstream Control: China controls the Indus River's origin but is not a party to the treaty. Its extensive dam-building activities can alter water flows downstream without any legal obligation to consult India or Pakistan, creating a major shared vulnerability.

Chronic Water Mismanagement: Both nations suffer from severe inefficiency. Wasteful agricultural practices and over-extraction of groundwater have depleted aquifers across the basin.

Failed Dispute Resolution: Mechanism to resolve conflicts is broken. Constant disagreements over India's hydroelectric projects, like the Ratle Dam, led to a deadlock when India rejected the authority of the Permanent Court of Arbitration.

Concerns related to India's decision to suspend the IWT

Triggers Geopolitical Crisis: India suspended the treaty in April 2025 after a terror attack, directly linking water flow to national security and aiming to force renegotiation.

  • Abrogating the treaty viewed by Pakistan as an act of aggression, risking a direct conflict between two nuclear-armed neighbors over water resources.

Destabilizes the Region: It sets a dangerous precedent, encouraging other upstream nations like China to disregard cooperative principles on other shared rivers (e.g., the Brahmaputra), threatening regional stability.

Damages International Reputation: Unilaterally exiting the treaty would shatter India's image as a responsible nation, making it difficult to negotiate other water treaties, such as with Bangladesh on the Teesta River.

Violates International Law: Treaty has no "exit clause" and can only be modified by mutual consent. A unilateral abrogation would be a clear violation of international law with no legal standing.

What is the Way Forward for the Indus Waters Treaty?

Modernize the Treaty: Renegotiate treaty to include provisions for climate change adaptation, shared groundwater management, and cross-border water quality to address modern environmental realities.

Maximize Water Utilization and Infrastructure Development: Complete planned projects on the Eastern Rivers (Ravi, Beas, Sutlej) to ensure full utilization of India's allocated water.

  • Continue building legally permitted run-of-the-river hydroelectric projects on the Western Rivers (Indus, Jhelum, Chenab) to harness energy potential and establish a consistent pattern of use.

Maintain an Assertive Diplomatic Stance: Use the 2025 treaty suspension as a powerful lever. Make it clear that a return to the old treaty is not an option and that dialogue must focus on modernization.

Overhaul Dispute Resolution: Reject any third-party arbitration. Follow the original step-by-step dispute resolution process and introduce a mandatory clause for periodic review and renegotiation to ensure the treaty remains relevant.

Adopt a Basin-Wide Approach: Shift from water allocation to integrated basin management and engage upstream stakeholders (China), in a trilateral data-sharing agreement for a holistic approach.

Depoliticize Through Science: Create a joint, independent scientific body to provide transparent data on river flows and climate impacts, insulating technical issues from political rhetoric.

Focus on Shared Vulnerabilities: Reframe dialogue around mutual survival threats like water scarcity and climate change, encourage cooperation on disaster management, such as joint flood forecasting, to build trust. 

Conclusion

The Indus Waters Treaty, despite its imperfections, is crucial for regional stability and preventing geopolitical tensions. Absence could damage India's international image and legal hurdles. Modernizing dispute resolution and basin-wide cooperation mechanisms is essential for a sustainable future.

Source: THE HINDU 

PRACTICE QUESTION

Q. "The Indus Waters Treaty, once hailed as a triumph of diplomacy, is now facing unprecedented challenges." Critically analyze. 150 words

Frequently Asked Questions (FAQs)

It is a water-sharing agreement that divides the six rivers of the Indus basin, giving control of the three eastern rivers to India and the three western rivers to Pakistan.

The treaty was brokered and signed with the help of the World Bank.

It is a bilateral body with a commissioner from each country that manages the treaty's implementation and resolves technical issues.

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