Indus Water Treaty for UPSC Prelims and Mains Exam 2025

Indus Water Treaty: The Indus Water Treaty (IWT) is a key component of India’s bilateral relations with Pakistan and is a highly relevant topic for aspirants preparing for the UPSC Prelims and Mains Exam 2025. Signed in 1960, this agreement governs the sharing of water from the Indus River system between India and Pakistan. The treaty’s endurance, technical structure, and ongoing disputes make it crucial for topics in international relations, environmental studies, and current affairs.

What is Indus Water Treaty: Check its Meaning 

The Indus Water Treaty is a water-sharing agreement signed between India and Pakistan on September 19, 1960, with the World Bank acting as a mediator. It ensures the equitable distribution and use of the Indus river system, which supports agriculture and livelihood across both countries.

The Indus Water Treaty 1960 remains a cornerstone of India-Pakistan water diplomacy. With recent developments, including the Neutral Expert’s ruling, the treaty is once again under the spotlight. For UPSC Prelims and Mains 2025, aspirants must grasp the treaty’s structure, recent disputes, India's position, and geopolitical implications.

Indus Water Treaty 1960 Rivers Allocation

The IWT categorizes the Indus river system into:

• Eastern Rivers: Sutlej, Beas, and Ravi – India has exclusive rights over these rivers.
• Western Rivers: Indus, Jhelum, and Chenab – Pakistan has primary rights, while India can use them for non-consumptive purposes like hydropower and irrigation under strict conditions.

Indus Water Treaty Main Points

Key provisions of the Indus Water Treaty 1960 include:

• Division of Rivers: Equitable sharing of the six rivers in the Indus system.
• Usage Rights: India’s right to use Western rivers for specific non-consumptive needs.
• Permanent Indus Commission (PIC): A bilateral body to facilitate cooperation and resolve minor issues.
• Dispute Resolution Mechanism: A three-tiered structure involving the PIC, a Neutral Expert, and the Court of Arbitration.
• Data Sharing and Transparency: Mandatory exchange of data related to river flows and project plans.

Dispute Resolution Mechanism under the Indus Water Treaty

Outlined in Article IX, the treaty features a three-level mechanism:

1. Permanent Indus Commission (PIC)

• Initial Step: Countries must notify each other of any planned projects.
• Role: Facilitate discussion and resolve minor technical differences.
• Escalation: If unresolved, the issue is referred to the next level.

2. Neutral Expert (NE)

• Appointed by the World Bank, the Neutral Expert evaluates technical issues.
• Recent Development: In 2024, Michel Lino, the World Bank-appointed NE, declared himself competent to decide on seven technical disputes, including those related to Kishenganga and Ratle projects.
• India’s Stand: India welcomed the decision, emphasizing that it aligns with the treaty’s provisions.

3. Court of Arbitration (CoA)

• If the NE fails to resolve the matter, it is escalated to the CoA, whose chair is also appointed by the World Bank.
• The CoA’s decisions are final and binding.

Background of the Dispute: Kishenganga and Ratle Projects

The core of the current tensions lies in two Indian hydropower projects:

• Kishenganga Project: On a tributary of the Jhelum River.
• Ratle Project: On the Chenab River.

Timeline of Events:

• 2015: Pakistan initially sought a Neutral Expert.
• 2016: Pakistan bypassed the NE process and approached the CoA directly, violating Article IX.
• India’s Response: Opposed the parallel arbitration, calling the CoA "illegally constituted."
• 2022: The World Bank facilitated both a CoA and an NE simultaneously, creating a rare instance of dual processes.
• 2024: The Neutral Expert ruled in favor of India’s approach.

India’s Official Position

India has consistently opposed the parallel proceedings, stating that they contravene the treaty. The Ministry of External Affairs reiterated that the Neutral Expert is the correct forum to handle the ongoing issues. The recent ruling by Michel Lino affirmed India’s legal interpretation of the treaty and confirmed the NE’s jurisdiction over all seven disputes.

Treaty Review and Future Outlook

India, invoking Article XII(3), issued notices in January 2023 and again in August 2024 to Pakistan, seeking a review and possible modification of the treaty. Despite repeated communications, Pakistan has not formally responded.

What’s Next?

The Neutral Expert will now assess each of the seven technical differences. This evaluation could have far-reaching implications for the future of the treaty and regional cooperation.

Importance of Indus Water Treaty for UPSC

The Indus Water Treaty for UPSC is crucial in multiple papers:

• GS Paper II: International Relations – Bilateral relations, treaties, and institutions.
• GS Paper III: Water resources, environmental conservation, and disaster management.
• Essay and Ethics Papers: Themes around diplomacy, peaceful conflict resolution, and environmental justice.
• Current Affairs: Constantly in the news due to political tensions and climate implications.