Daily Current Affairs

The Indus Waters Treaty is in focus after India rejected the Hague-based Court of Arbitration’s finding that keeping the treaty in abeyance is impermissible. This note explains the Indus Waters Treaty dispute and the static facts needed for prelims.

Why in News?

The Court of Arbitration concluded that India’s decision to hold the Indus Waters Treaty (IWT) in ‘abeyance’ was not permissible under the Treaty or international law.

India rejected the award, stating the court is ‘illegally constituted’ and has ‘no jurisdiction whatsoever’ to pronounce on India’s sovereign decisions; India placed the treaty in abeyance after the Pahalgam terror attack (April 2025).

Indus Waters Treaty: Key Facts for Prelims

• Signed 19 September 1960 in Karachi by Jawaharlal Nehru and Ayub Khan; brokered by the World Bank (a signatory for limited purposes).
• Eastern rivers – Sutlej, Beas, Ravi: exclusive use by India (~20% of basin water, ~33 MAF).
• Western rivers – Indus, Jhelum, Chenab: allocated to Pakistan (~80%, ~135 MAF); India may use them for non-consumptive uses, limited irrigation and run-of-the-river hydropower.
• Institutional mechanism: Permanent Indus Commission (one commissioner each), meeting at least once a year.
• Three-tier dispute resolution: Permanent Indus Commission → Neutral Expert (technical ‘differences’) → Court of Arbitration (‘disputes’). India favours the Neutral Expert route; Pakistan pushed for a Court of Arbitration on Kishenganga and Ratle projects.
• Treaty has no unilateral exit clause (Article XII) – it can be modified only by a ratified treaty between the two governments.

Permanent Court of Arbitration – static points

• The ‘Hague Court of Arbitration’ refers to the Permanent Court of Arbitration (PCA), established by the 1899 Hague Convention, located at the Peace Palace, The Hague.
• Resolves disputes between states, state entities, international organisations and private parties; not to be confused with the International Court of Justice (UN’s principal judicial organ, also in the Peace Palace).
• Earlier IWT cases: Baglihar (Neutral Expert, 2007) and Kishenganga (Court of Arbitration, 2013).

Indian projects on the western rivers

• Kishenganga (Jhelum tributary), Ratle, Baglihar, Salal, Dulhasti, Pakal Dul, Kiru, Kwar (all on the Chenab system), Tulbul navigation project (Wular Lake).

Quick Revision Table: Indus Waters Treaty

Trap / Confusing Points: Indus Waters Treaty

5 Practice MCQs on Indus Waters Treaty

1. Which of the following are ‘eastern rivers’ under the Indus Waters Treaty?
a. Indus, Jhelum, Chenab
b. Sutlej, Beas, Ravi
c. Ravi, Chenab, Jhelum
d. Sutlej, Indus, Beas
Ans: B
Explanation: India has exclusive rights over Sutlej, Beas and Ravi.

2. The Indus Waters Treaty was brokered by:
a. United Nations
b. World Bank
c. International Court of Justice
d. Commonwealth
Ans: B
Explanation: The World Bank mediated the treaty signed in 1960.

3. The Permanent Court of Arbitration was established under:
a. UN Charter 1945
b. Hague Convention 1899
c. Geneva Convention 1949
d. Treaty of Versailles 1919
Ans: B
Explanation: The PCA was created by the 1899 Hague Convention for the Pacific Settlement of International Disputes.

4. The Kishenganga hydroelectric project is built on a tributary of which river?
a. Chenab
b. Ravi
c. Jhelum
d. Indus
Ans: C
Explanation: Kishenganga (Neelum) is a tributary of the Jhelum.

5. Under the IWT, the first forum for resolving questions between the two countries is:
a. Court of Arbitration
b. Neutral Expert
c. Permanent Indus Commission
d. International Court of Justice
Ans: C
Explanation: The Permanent Indus Commission is the first tier; Neutral Expert and Court of Arbitration follow.

Exam tip: Revise Indus Waters Treaty together with the static links above; UPSC and APPSC prelims often frame questions from these interconnections.

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To know more about India’s rejection of the IWT ruling, Click here.