Permanent Court of Arbitration (PCA) Verdict Against India on Indus Water Treaty
The Permanent Court of Arbitration (PCA) at The Hague (Netherland) ruled that the Indus Water Treaty (IWT), 1960 remains legally binding and cannot be unilaterally suspended by India. It also imposed temporary restrictions on certain works related to the 850 MW Ratle Hydroelectric Project on the Chenab River. India rejected the ruling, arguing that the tribunal was illegally constituted and had no jurisdiction over India.
Permanent Court of Arbitration (PCA) -
The Permanent Court of Arbitration (PCA) is an intergovernmental organisation established in 1899 through the Convention for the Pacific Settlement of International Disputes, adopted at the First Hague Peace Conference. Its framework was revised by the 1907 Hague Convention. The PCA provides a flexible platform for the peaceful settlement of international disputes through arbitration, conciliation, mediation and fact-finding.
Although India and Pakistan are both member states/Contracting Parties of the PCA, India completely boycotted the Court of Arbitration proceedings related to the Indus Water Treaty. India did not participate in the proceedings because it does not recognise the tribunal as having jurisdiction over the matter.
Indus Water Treaty (IWT), 1960 -
The Indus Water Treaty (IWT) is a water-sharing agreement between India and Pakistan for the use of the waters of the Indus River system. It was negotiated with the mediation of the World Bank and signed at Karachi on 19 September 1960 by Indian Prime Minister Jawaharlal Nehru and Pakistani President Ayub Khan.
The treaty divided the six major rivers of the Indus Basin into two groups. India has control over the Eastern Rivers i.e. Ravi, Beas and Sutlej, while Pakistan has control over the Western Rivers i.e. Indus, Jhelum and Chenab. However, India is allowed certain limited uses of the Western Rivers, including hydropower generation, subject to treaty conditions.
India’s Stand - India has rejected the PCA ruling, saying that the Court of Arbitration was not validly constituted and has no jurisdiction over Sovereign India. India argues that the Indus Water Treaty itself provides a step-by-step system for resolving disputes through the Permanent Indus Commission, Neutral Expert and then the Court of Arbitration. India has also maintained that the IWT has been kept in abeyance since April 2025 following the Pahalgam terror attack. India wants the treaty to be reconsidered in view of changing security, climate, demographic and regional conditions. India has said that it will not accept the PCA’s decision or let it affect its actions on its hydroelectric projects.