Indus Waters Treaty explained: Why India wants to renegotiate the 1960 water-sharing pact with Pakistan

The Indus Waters Treaty (IWT) has once again become a focal point in India-Pakistan relations after India reiterated that the six-decade-old agreement needs to be renegotiated to reflect present-day realities. New Delhi has argued that profound changes since the treaty was signed in 1960—including climate change, rising water demand, technological advances in hydropower, demographic pressures, and persistent cross-border terrorism—have altered the context in which the agreement operates.The treaty, brokered by the World Bank, is often cited as one of the world’s most durable international water-sharing agreements, having survived multiple wars and prolonged diplomatic tensions between the two neighbours. However, India maintains that while the treaty has endured, its provisions and dispute-resolution mechanisms require updating to meet contemporary challenges.The issue has acquired renewed significance for students of international relations, geography, environment and current affairs.

The concept in simple terms

The Indus Waters Treaty (IWT) is a water-sharing agreement between India and Pakistan, signed on September 19, 1960, in Karachi by Indian Prime Minister Jawaharlal Nehru and Pakistani President Field Marshal Ayub Khan. The World Bank facilitated the negotiations and is a signatory to certain provisions relating to dispute settlement.Instead of dividing the quantity of water flowing through the Indus basin every year, the treaty divides the six rivers of the Indus river system between the two countries.Under the treaty: India has exclusive rights over the three eastern rivers:• Ravi• Beas• SutlejPakistan receives the waters of the three western rivers:• Indus• Jhelum• ChenabAlthough the western rivers are allocated primarily to Pakistan, India retains specified rights to use them for domestic purposes, navigation, limited irrigation, run-of-the-river hydroelectric projects and certain storage, subject to detailed technical conditions laid down in the treaty.The agreement allocated nearly 80% of the waters of the Indus system to Pakistan and the remaining share to India, making it one of the most generous river-sharing arrangements negotiated after Independence.More than 300 million people across both countries depend directly or indirectly on the Indus basin for drinking water, irrigation, agriculture and power generation.

How it functions

Unlike many river-sharing agreements that allocate water according to seasonal flows or percentages, the Indus Waters Treaty allocates entire rivers.Water allocationIndia enjoys unrestricted use of:• Ravi• Beas• SutlejPakistan receives the waters of:• Indus• Jhelum• ChenabIndia may still undertake certain activities on the western rivers, including:• Run-of-the-river hydroelectric projects• Domestic consumption• Navigation• Limited irrigation• Storage within treaty-prescribed limitsThese projects must comply with detailed engineering specifications designed to ensure they do not significantly affect downstream flows into Pakistan.Permanent Indus CommissionThe treaty established the Permanent Indus Commission (PIC), consisting of one commissioner from each country.Its functions include:• Exchange of river flow and hydrological data• Inspection of projects• Annual meetings• Resolution of technical questions• Facilitating cooperation on implementationDispute resolutionThe treaty follows a graded dispute-resolution mechanism:1. Questions are first examined by the Permanent Indus Commission.2. If unresolved, technical differences may be referred to a Neutral Expert.3. Legal disputes involving interpretation of the treaty may be referred to a Court of Arbitration.The World Bank has a limited procedural role in facilitating these mechanisms where required under the treaty. It neither manages the rivers nor determines water allocations.

Why does India want to renegotiate the treaty?

India’s demand is not based on a single issue but on several developments that have emerged over the last six decades.1. Changed circumstances since 1960India argues that the treaty was negotiated under conditions that no longer exist.Since then:• India’s population has more than tripled.• Water demand for agriculture, drinking water and industry has increased sharply.• Climate change has altered rainfall patterns, glacier melt and river flows.• Advances in engineering have transformed hydropower technology.India maintains that the treaty should evolve to reflect these new realities.2. Repeated objections to Indian hydropower projectsIndia has maintained that Pakistan has repeatedly objected to Indian run-of-the-river hydropower projects permitted under the treaty, including projects such as Kishanganga and Ratle.According to India, prolonged litigation and objections have delayed infrastructure projects that comply with treaty provisions and are important for Jammu & Kashmir’s energy security.3. Concerns over the dispute-resolution mechanismIndia has also raised concerns regarding the interpretation of the treaty’s dispute-resolution process.New Delhi argues that the treaty envisages a graded mechanism, where issues move sequentially from the Permanent Indus Commission to a Neutral Expert and then, where applicable, to a Court of Arbitration.India has objected to the simultaneous invocation of both the Neutral Expert and Court of Arbitration processes in recent disputes, arguing that parallel proceedings create legal uncertainty and are inconsistent with the treaty’s intended framework.4. Cross-border terrorismIndia’s position has increasingly linked the future of bilateral cooperation, including the treaty, to Pakistan’s action against cross-border terrorism.Following major terrorist attacks—including Uri (2016), Pulwama (2019) and the Pahalgam terror attack of April 2025—India has argued that “terror and talks cannot go together.”After the Pahalgam attack, India announced that the treaty would be held in abeyance until Pakistan credibly and irrevocably ends its support for cross-border terrorism. Pakistan disputes India’s ability to suspend the treaty unilaterally, making the issue part of an ongoing diplomatic disagreement.5. Better utilisation of India’s treaty rightsIndia has also stated that it seeks greater operational flexibility to fully utilise the water allocated to it under the treaty for irrigation, drinking water and hydropower generation in Jammu & Kashmir, Ladakh, Himachal Pradesh and Punjab.6. Climate resilience and modern water governanceExperts note that the treaty was negotiated decades before climate change became a central concern in international water governance.Modern agreements increasingly incorporate provisions relating to:• Climate adaptation• Environmental sustainability• Basin-wide planning• Flood management• Data sharing• Ecosystem protectionIndia argues that these aspects deserve greater attention in any future revision.

Important institutions, agreements and legal framework

• Indus Waters Treaty (1960): The principal agreement governing the sharing of the Indus river system between India and Pakistan.• World Bank: Facilitated negotiations leading to the treaty and performs specified procedural functions in parts of the dispute-resolution process.• Permanent Indus Commission (PIC): The bilateral institution responsible for implementing and monitoring the treaty.• Neutral Expert: An independent technical authority appointed to resolve engineering-related differences.• Court of Arbitration: A tribunal constituted under the treaty to decide disputes involving legal interpretation.

International Freshwater Treaties Database

Developed by Oregon State University’s Transboundary Freshwater Dispute Database, this global repository documents hundreds of international freshwater agreements. Scholars frequently cite it while comparing river basin treaties worldwide, including the Indus Waters Treaty.Relevance for IndiaWater security: The Indus basin supports agriculture, drinking water and hydropower across northern India and remains strategically important for long-term water security.Hydropower development: Projects on the western rivers can help improve electricity generation in Jammu & Kashmir while remaining within treaty provisions.Climate change: Rapid glacier retreat in the Himalayas, changing monsoon behaviour and increasing frequency of extreme weather events have strengthened calls for more adaptive water governance.Strategic significance: The treaty occupies an important place in India-Pakistan diplomacy and is frequently discussed alongside issues relating to security, regional stability and transboundary resource management.

Global significance

The treaty is often studied alongside other international river agreements. For example, the 1995 Mekong Agreement, which established the Mekong River Commission among Cambodia, Laos, Thailand and Vietnam, reflects a more contemporary approach by incorporating provisions on sustainable development, environmental management, basin planning and cooperative water governance. Comparisons with such modern agreements often feature in discussions on whether older treaties like the IWT require updating.Prelims Fact Box

UPSC Mains practice questionThe Indus Waters Treaty has been described as one of the world’s most durable transboundary water-sharing agreements. In the light of India’s demand for renegotiation, critically examine the treaty’s key provisions, the reasons behind India’s position, and the challenges of managing shared river basins in an era of climate change and geopolitical tensions.Five key terms to remember• Indus Waters Treaty (IWT): The 1960 agreement governing the sharing of the Indus river system between India and Pakistan.• Permanent Indus Commission (PIC): The bilateral body responsible for implementing and monitoring the treaty.• Run-of-the-river Project: A hydropower project that generates electricity using the natural flow of a river without creating large storage reservoirs.• Neutral Expert: An independent technical authority appointed to resolve engineering-related differences under the treaty.• Court of Arbitration: The treaty’s highest dispute-resolution mechanism for legal disagreements.

FAQs

Q1. Why is the Indus Waters Treaty considered unique?It has remained operational since 1960 despite multiple wars and prolonged political tensions between India and Pakistan, making it one of the world’s longest-surviving international river treaties.Q2. Does the treaty prevent India from using the western rivers?No. India is permitted to use the western rivers for domestic consumption, navigation, limited irrigation and run-of-the-river hydropower projects within the technical limits prescribed by the treaty.Q3. Why does India want to renegotiate the treaty?India argues that the treaty needs updating because of climate change, increased water demand, advances in hydropower technology, repeated disputes over Indian projects, concerns about the dispute-resolution process and the changed security environment, including persistent cross-border terrorism.Q4. What role does the World Bank play?The World Bank facilitated the original negotiations and has limited procedural responsibilities in the treaty’s dispute-resolution process. It does not control river waters or determine water allocations.Q5. Why is the treaty important for UPSC and competitive examinations?The treaty is relevant to international relations, India-Pakistan relations, geography, environmental governance, water resource management, international law and current affairs, making it a recurring topic in competitive examinations.