India has rejected a ruling by a Hague-based Court of Arbitration that said the Indus Waters Treaty (IWT) with Pakistan remains in force, maintaining that the tribunal has no jurisdiction over India’s sovereign decisions.
The Permanent Court of Arbitration in The Hague ruled on August 31 that India’s decision to place the 1960 water-sharing agreement in abeyance was not permitted under the treaty. It also issued interim measures concerning the Ratle hydroelectric project in Jammu and Kashmir. India, however, has refused to recognise the ruling, saying the arbitration body itself was constituted in breach of the treaty.
The Ministry of External Affairs said the court’s decision would have no effect on India’s position, projects or actions. New Delhi has maintained that its decision to suspend the treaty remains in force.
The dispute dates back to April 2025, when India announced that it was putting the Indus Waters Treaty in abeyance following the terrorist attack in Pahalgam. India linked the decision to Pakistan’s alleged support for cross-border terrorism. Pakistan has rejected those allegations.
The 1960 treaty has governed the sharing of the waters of the Indus river system between India and Pakistan for more than six decades. It gives India rights over the eastern rivers — Ravi, Beas and Sutlej — while Pakistan has the main use of the western rivers — Indus, Jhelum and Chenab, subject to provisions allowing India certain uses, including hydropower generation.
Despite wars and repeated periods of tension, the treaty had remained operational since it was signed. Its suspension has now become another major point of friction between the two nuclear-armed neighbours.
The Hague tribunal, which was established under the dispute-resolution provisions of the treaty, rejected India’s argument that the agreement could be placed in abeyance because of changed circumstances. It said the treaty continues to operate and that India cannot unilaterally suspend or terminate it.
India disputes that conclusion and has consistently questioned the tribunal’s legitimacy. New Delhi had objected to the parallel arbitration process, arguing that the matter should instead be addressed through the treaty’s Neutral Expert mechanism.
The latest ruling also deals with the Ratle hydroelectric project on the Chenab river. The court ordered interim restrictions on certain construction activities while questions concerning the project’s compliance are considered. A World Bank-appointed neutral expert is separately examining related technical issues, with a decision expected around July 2027.
The Ratle project has been a longstanding point of disagreement between India and Pakistan. Islamabad has raised objections to the design of Indian hydropower projects on the western rivers, arguing that they could affect the flow of water into Pakistan. India has maintained that its projects comply with the provisions of the Indus Waters Treaty.
The latest ruling is therefore about more than a dispute over a particular dam, for India. It touches on the larger question of whether an international arbitration body can make decisions on India’s water resources when New Delhi does not accept its jurisdiction.
Pakistan, meanwhile, has welcomed the Hague ruling and said the treaty must be respected. The country relies heavily on the Indus river system for agriculture and water supplies, making the agreement economically and strategically important for Islamabad. The treaty is considered particularly significant for Pakistan’s agricultural sector.
The disagreement comes at a time when India-Pakistan relations remain deeply strained. Security concerns, cross-border terrorism and military tensions have already damaged bilateral engagement. The dispute over the Indus river waters now adds another difficult issue to the relationship.
India’s position remains unchanged: the suspension of the treaty continues, and the Hague tribunal’s ruling does not alter that decision. New Delhi has also indicated that the ruling will not affect its ongoing infrastructure and hydropower plans.
The latest development is unlikely to bring an immediate resolution to the dispute. Instead, it has created two sharply different positions. The Hague tribunal considers the treaty legally binding and India’s suspension invalid, while India says the tribunal lacks authority and that its decision has no bearing on India’s sovereign choices.
For now, the Indus Waters Treaty dispute remains closely tied to the wider India-Pakistan relationship. With water security, hydropower development and national security all involved, the disagreement is likely to remain a sensitive issue between the two countries.
