Indus Water Treaty Dispute Explained:Latest Updates, India’s Actions & Key Issues

Indus Water Treaty Dispute Explained

Indus Water Treaty Dispute Explained: The Indus Water Treaty (IWT), signed in 1960 between India and Pakistan, is a seminal water-sharing agreement. Weathering wars and conflicts, the treaty has plunged into troubled waters because of escalating tensions and strategic differences over the past few years. Let us dismantle the Indus Water Treaty dispute and India’s recent actions in 2025.

What Is the Indus Water Treaty?

Facilitated by the World Bank, the treaty distributes:
1. Western Rivers (Indus, Jhelum, Chenab) to Pakistan
2. Eastern Rivers (Ravi, Beas, Sutlej) to India
India is permitted limited use of western rivers for irrigation, hydropower, and non-consumptive uses on a strictly regulated basis.

Indus Water Treaty Dispute Explained

Present dispute Concerns to India’s hydel projects on the western rivers, particularly in Jammu & Kashmir and Ladakh. Pakistan claims these are different to the treaty and can cut down its water supply, while India assures that all the projects are within allowed limits.
Projects in question:
1. Kishanganga Hydroelectric Project
2. Ratle Hydroelectric Project

Indus Water Treaty Dispute Explained

How does the Indus Water Treaty works.

According to the agreement, India has control over  the eastern rivers of Ravi, Beas, and Sutlej, whereas Pakistan receives water from the western rivers of Indus, Jhelum, and Chenab.
The treaty is in favor of Pakistan since it gets approximately 80% of the entire water supply from these rivers, which are important for agricultural purposes in Pakistan, particularly in the provinces of Punjab and Sindh.

Recent Moves of Indian Government (2023–2025)

1. Notice to Improve the Treaty (2023)
In January 2023, India formally notified Pakistan to start Improving the treaty, alleging long standing inaction on dispute resolution and Pakistan’s determined resort to parallel streams of justice.
2. Increase Water Storage Schemes
India has increased spending on water storage facilities on the Chenab and Ravi rivers to take its entire share of eastern river waters, which had been left unused and Drip into Pakistan.
3. Focus on Strategic Water Utilization
India’s Ministry of Jal Shakti and Ministry of External Affairs have combined efforts to activate national water rights and examine treaty implementation in the context of increasing national security interests.
4. World Bank Engagement
India has Infuence the World Bank to continue playing a balanced role as a facilitator, particularly as Pakistan continues to maintain on court-based solutions rather than neutral expert mechanisms.

Current Status in 2025

After Pahalgam attack on April 22, 2025 India suspended the Indus Water Treaty with Pakistan on Wednesday following the Pahalgam terror attack. The action was one of five key decisions taken at a Cabinet Committee on Security (CCS) meeting chaired by Prime Minister Narendra Modi.
It was negotiated by the World Bank following nine years of negotiations and Signed by India’s first Prime Minister Jawaharlal Nehru and President Ayub Khan of Pakistan for the management of common rivers

Indus Water Treaty Dispute Explained

Impact on Pakisthan

1. The Indus basin supplies 154.3 million acre-feet of water yearly, which is important for irrigating extensive agricultural areas and ensuring food security.

2. The Indus River network, comprising the Jhelum, Chenab, Ravi, Beas, and Sutlej rivers, serves as Pakistan’s principal water resource, supporting a population of tens of millions.

3. The agricultural sector contributes 23% to Pakistan’s national income and supports 68% of its rural inhabitants.

4. The treaty will impact Pakistan as it receives about 80% of the total water flow, which are important for agriculture in Pakistan, especially in the provinces of Punjab and Sindh.

5. Pakistan already faces critical water management issues such as groundwater depletion, Salt stress of agricultural lands, and limited water storage capacity.

Why This Matters

For India: Strategic utilization of river waters is Important for energy, agriculture, and defense.
For Pakistan: Upstream water dependency on India exposes it to permeability.
For the Region: The treaty is an unusual lightness of peaceful collabration. Upheaval would have serious geopolitical subdivision.

The Indus Water Treaty dispute is an example of increased water stress, national security imperatives, and diplomatic tensions. India is asserting a stronger stance as of 2025 to defend its interests, so this issue is imperative for anyone who follows South Asian geopolitics or is studying for UPSC and competitive exams.