India has rejected a ruling by the Permanent Court of Arbitration in The Hague ordering it to continue upholding the 1960 Indus Waters Treaty with Pakistan.
The Indian government said the tribunal had no authority to rule on what it described as India’s sovereign decisions, despite the country being an official member of the court.
The dispute follows India’s suspension of the decades-old water-sharing agreement in April 2025, after an attack at a tourist site in Indian-administered Kashmir killed 26 people. India linked the attack to Pakistan, while Islamabad denied any involvement.
The Permanent Court of Arbitration ruled on Monday that the treaty remains legally binding and that India had no grounds to suspend or terminate it.
The tribunal also ordered India to restrict construction activities at the Ratle hydroelectric project in Kashmir. The restrictions include limits on work on the dam wall and power intake structure and are expected to remain in force until 90 days after a World Bank-appointed neutral expert issues a decision, which is expected by July 2027.
India’s Ministry of External Affairs rejected the ruling, saying the tribunal had no jurisdiction over India’s sovereign decisions.
The ministry said the court’s pronouncements would have no impact on India’s activities related to its hydroelectric projects.
Pakistan, meanwhile, welcomed the tribunal’s interim measures. The Pakistani government said it was studying the ruling and considering how it could contribute to restoring engagement between the two countries under the treaty’s legal obligations.
The legal dispute began after India started work to increase reservoir capacity at two hydroelectric projects in the Kashmir region. Pakistan argued that the developments represented a significant move by India to operate outside the framework of the Indus Waters Treaty.
The 1960 treaty, brokered with the support of the World Bank, governs the sharing of the Indus River system between India and Pakistan. The rivers covered by the agreement are particularly important to Pakistan, where they provide water for a large share of agricultural activity.
The latest dispute has further strained relations between the nuclear-armed neighbours and placed the future of one of the world’s longest-running water-sharing agreements under renewed pressure.
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