India Suspends Indus Waters Treaty; Begins Hydroelectric Projects

May 2025 – In a major geopolitical development, India has announced the suspension of the Indus Waters Treaty (IWT), a landmark agreement signed in 1960 between India and Pakistan under the auspices of the World Bank. The decision comes amidst rising regional tensions and marks a pivotal shift in South Asia’s water diplomacy.

What Is the Indus Waters Treaty?

The Indus Waters Treaty, brokered by the World Bank and signed in 1960, governs the distribution of six rivers originating from the Himalayas: the Indus, Jhelum, Chenab, Ravi, Beas, and Sutlej. Under the treaty:

• India was given control over the three eastern rivers: Ravi, Beas, and Sutlej.

• Pakistan received rights over the three western rivers: Indus, Jhelum, and Chenab.

• India retained limited rights to use the western rivers for non-consumptive purposes such as irrigation, transport, and hydroelectric generation.

The IWT has long been hailed as one of the most successful water-sharing arrangements in the world, surviving three wars and multiple diplomatic standoffs between the two nuclear-armed neighbors.

Why Has India Suspended the Treaty?

India’s decision to suspend the treaty is rooted in a combination of national security concerns, strategic recalibration, and a growing emphasis on water security. The official statement from the Indian Ministry of External Affairs cites:

• Repeated cross-border terrorism incidents emanating from Pakistan.

• Pakistan’s objection to India’s permissible hydroelectric projects in Jammu & Kashmir, stalling development for years.

• The need to reassert sovereignty over water resources that India considers vital for its own growing energy and irrigation demands.

While not a complete withdrawal from the treaty, the suspension means India will no longer adhere to prior restrictions on dam-building and water diversion on the western rivers.

India Launches New Hydroelectric Projects

Coinciding with the suspension of the treaty, India has announced the launch of several new hydroelectric projects in the union territories of Jammu & Kashmir and Ladakh. These include:

• Kiru Hydroelectric Project (624 MW) – Located on the Chenab River, expected to be completed by 2028.

• Dul Hasti-II and Sawalkote Projects – Aimed at significantly increasing electricity generation and reducing reliance on coal.

• Pakal Dul (1000 MW) – One of the largest hydroelectric projects in the region, previously delayed due to treaty compliance concerns.

According to Indian officials, these projects will harness the untapped potential of the rivers and bolster energy security, especially in remote border areas.

Regional and International Reactions

The suspension of the treaty has evoked strong reactions:

• Pakistan has called the move “unilateral and illegal,” and plans to escalate the matter to international forums, including the United Nations.

• China, which has strategic interests in both countries, has called for restraint and a return to dialogue.

• The World Bank, a guarantor of the treaty, has expressed concern and urged both parties to resolve their differences through diplomacy.

Environmentalists and regional water experts have also raised alarms about the ecological consequences of accelerated dam construction in the fragile Himalayan ecosystem.

What Happens Next?

India’s suspension of the IWT is not a complete abrogation—yet. However, it signals a clear policy shift where strategic and developmental priorities may now override past diplomatic conventions. The move sets a precedent not just for India-Pakistan relations, but also for other transboundary water-sharing agreements in an era of climate stress and geopolitical tension.

While both nations continue to posture diplomatically, the world will be watching closely to see whether the Indus Waters Treaty—long a symbol of resilience—will be renegotiated, revived, or relegated to history.

Conclusion

India’s suspension of the Indus Waters Treaty is a historic moment with far-reaching consequences. As the subcontinent grapples with growing water scarcity, energy needs, and security challenges, the future of Indo-Pak water diplomacy remains uncertain. What is clear, however, is that water is no longer just a resource—it is a strategic asset, and its control will shape the geopolitics of South Asia in the decades to come.