Indus Water Treaty (1960)

The Indus Water Treaty (IWT) is a landmark water-sharing agreement signed between Indian Prime Minister Jawaharlal Nehru and Pakistan President Gen. Ayub Khan on September 19, 1960, with the World Bank acting as the mediator.

It governs the use and management of the waters of the Indus River system, which includes six rivers Indus, Jhelum, Chenab, Ravi, Beas, and Sutlej, that originate mainly in India and flow into Pakistan.

Under the treaty:

• The eastern rivers – Ravi, Beas, and Sutlej – were allocated to India for exclusive use.
• The western rivers – Indus, Jhelum, and Chenab – were allocated primarily to Pakistan, though India was permitted limited uses such as irrigation, hydroelectric generation, and navigation, provided it did not alter the natural flow substantially.

According to IWT, India can use 20% of the water (33 MAF (million acre-feet)) from the Indus river, which means 80% (135 MAF) of the share of the water went to Pakistan.

Indus Water Treaty – River Allocation

Eastern Rivers (India)	Western Rivers (Pakistan)
Ravi	Indus
Beas	Jhelum
Sutlej	Chenab
Allocated to India	Allocated to Pakistan

Dispute Resolution Mechanism

The Indus River, which had its origin in Tibet, had been a bone of contention between the four countries through which it runs – India, China, Pakistan & Afghanistan. 

The IWT provides a three-tiered mechanism for resolving these differences and disputes. They are:

Permanent Indus Commission (PIC)

A key feature of the Indus Water Treaty is the establishment of the Permanent Indus Commission, consisting of one commissioner from each country. It was set up by the United Nations. 

The Commission's responsibilities include:

• Ensuring implementation of the treaty.
• Exchanging river flow data regularly.
• Conducting inspections and field visits to river projects.
• Resolving technical disputes and facilitating dialogue.

The Commission meets at least once a year, alternating between India and Pakistan, and acts as the first platform for resolving any disagreements related to the treaty. 

Its consistent functioning has helped maintain cooperation even during times of political and military conflict between the two nations.

Neutral Expert

If the Permanent Indus Commission fails to resolve a 'difference', a Neutral Expert can be appointed by the World Bank.

Court of Arbitration 

For 'disputes' regarding the interpretation or application of the treaty, a Court of Arbitration can be set up by the World Bank.

Significance of the Treaty

The Indus Water Treaty is one of the most resilient international agreements. It has continued to function effectively despite multiple wars and diplomatic tensions.

For Pakistan, the treaty ensures water security for its agricultural sector, while for India, it offers a framework to harness the eastern rivers and limited rights over the western rivers.

The Treaty remains a cornerstone of peace-building efforts in South Asia, especially in the domain of shared natural resources.

The treaty does not have a clause for unilateral termination by either country. It can only be modified or terminated by a mutually agreed and ratified treaty.

In Summary,

Aspect	Details
Signed on	19 September 1960 (Karachi)
Parties Involved	India, Pakistan (mediated by the World Bank)
Rivers Covered	Indus, Jhelum, Chenab, Ravi, Beas, Sutlej
River Allocation	-  Eastern Rivers (Ravi, Beas, Sutlej): India  -  Western Rivers (Indus, Jhelum, Chenab): Pakistan
India's Rights on Western Rivers	Limited use for irrigation, hydroelectric generation (without affecting flow)
Dispute Resolution Mechanism	1. Bilateral talks (via Permanent Indus Commission) 2. Neutral Expert (World Bank appointed) 3. Arbitration by International Court
Permanent Indus Commission	-  One commissioner from each country  -  Annual meetings  -  Data sharing and inspections  -  First step for resolving disputes
Significance	-  One of the most successful water-sharing agreements  -  Survived wars and tensions  -  Critical for Pakistan's agriculture and India's eastern river  development

Why in the News?

 

On April 23, 2025, India suspended the 64-year-old Indus Water Treaty following the terrorist attack in Pahalgam, Jammu and Kashmir, which resulted in the tragic loss of 26 lives. 

This decision was cleared by the Cabinet Committee on Security (CCS), the apex body on national security.

This incident marks a significant shift in India's diplomatic stance, potentially leveraging the treaty as a tool to pressure Pakistan over ongoing cross-border terrorism.

The IWT had survived 4 major wars, crises, and decades of hostile diplomacy. 

India is reportedly invoking the principle of rebus sic stantibus under Article 62 of the Vienna Convention on the Law of Treaties, which allows a state to suspend or withdraw from a treaty due to a "fundamental change of circumstances" that were essential to the consent of the parties at the time of the treaty's signing. 

India argues that sustained cross-border terrorism by Pakistan constitutes such a fundamental change.

This suspension has significant implications for water sharing and bilateral relations for both countries.   

The Indus River system is critical for Pakistan, often referred to as its "lifeline," and the Indus River system contributes nearly 25% of Pakistan’s GDP.

Pakistan, being one of the most water-stressed countries in the world, any disruption to the water flow, or India gaining greater control over these rivers, could have devastating effects. 

Pakistan's agriculture (80%), water security, and hydropower generation, sectors that heavily rely on the western rivers of the Indus system will have a immediate and severe impact.

Pakistan has already termed any attempt to block or divert its water as an "act of war."

While the suspension allows India greater flexibility in utilizing the western rivers, our current infrastructure might limit the immediate ability to significantly alter water flow.

Large-scale projects to store or divert water would require significant time, investment, and technological advancement. 

The move also carries the risk of escalating tensions with Pakistan and could have international repercussions.

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