The Permanent Court of Arbitration in The Hague has issued a firm ruling, declaring that India must continue to uphold the long-standing Indus Waters Treaty with Pakistan. The court asserted that India’s decision to suspend parts of the 1960 agreement—a move triggered by heightened geopolitical tensions and allegations surrounding a 2023 attack in Kashmir—lacks legal justification. Consequently, the court has mandated that India must limit construction activities at its hydroelectric projects in the Kashmir region, specifically restricting certain dam wall and power intake designs until a neutral expert appointed by the World Bank delivers a final assessment by mid-2027.

Despite the ruling, the Indian government has formally rejected the authority of the court, maintaining that it holds no jurisdiction over India's sovereign infrastructure decisions. New Delhi has explicitly stated that it does not recognize the verdict and will proceed with its projects as planned, asserting that the court’s pronouncements will have no bearing on its national operations. This standoff highlights the fragility of the Indus Waters Treaty, an agreement that has remarkably survived three wars and decades of hostility, yet now faces its most significant challenge as both nations clash over water rights and regional security.