India rejects court order to uphold decades-old water-sharing treaty with Pakistan

The Indian government has categorically rejected an arbitration ruling which said the country must uphold a decades-old water-sharing treaty with Pakistan and limit construction on a hydroelectric project in the disputed Kashmir region.

The Permanent Court of Arbitration (PCA) in the Hague on Monday ruled in Pakistan’s favor over the 1960 Indus Water Treaty, saying the historic pact remains fully binding and that India had no valid grounds for ending or suspending it.

India, which moved to put the agreement “in abeyance” last year, said its decision remains in force.

“This so-called Court of Arbitration has no jurisdiction whatsoever to pronounce on India’s sovereign decisions,” India’s Ministry of External Affairs said in a statement on Monday.

“Its pronouncements, now or in the future, will have no effect on India’s actions in connection with the projects being undertaken by India,” it added.

The PCA also ordered India to limit construction on the Ratle hydroelectric plant in Kashmir, prohibiting work on the dam wall and power intake structure above certain levels. This ruling is set to remain in place until 90 days after a World Bank-appointed neutral expert delivers a final decision, which is expected before July 2027.

The arbitration ruling adds a new layer of stress to a long-simmering water dispute between two nuclear-armed neighbors.