India welcomes neutral expert's decision on Indus Waters Treaty, rejects Court of Arbitration

New Delhi: India has welcomed the neutral expert's decision under the Indus Waters Treaty, 1960, which validates India's stance on the Kishenganga and Ratle hydroelectric projects. The decision, announced on January 20, 2025, confirms that the neutral expert has the authority to address seven key questions related to these projects.

The Ministry of External Affairs (MEA) emphasized that this decision upholds India's consistent position that the Neutral Expert alone has the competence to decide on these differences. With this decision, the Neutral Expert will proceed to the next phase of the proceedings, culminating in a final decision on the merits of each of the seven differences.

India remains committed to preserving the integrity of the Indus Waters Treaty and will continue to participate in the Neutral Expert process. However, India does not recognize or participate in the Court of Arbitration proceedings, as they are deemed illegal and inconsistent with the Treaty's provisions.

In addition to the Neutral Expert proceedings, India and Pakistan are also engaged in discussions on modifying and reviewing the Indus Waters Treaty, as per Article XII (3) of the Treaty. 

Read MEA's full statement: 

The Neutral Expert has issued a press release on 20th January 2025 on his competence to address certain issues related to projects under the Indus Waters Treaty.

2. India welcomes the decision given by the Neutral Expert under Paragraph 7 of Annexure F to the Indus Waters Treaty, 1960. The decision upholds and vindicates India’s stand that all seven (07) questions that were referred to the Neutral Expert, in relation to the Kishenganga and Ratle hydroelectric projects, are differences falling within his competence under the Treaty.

3. It has been India’s consistent and principled position that the Neutral Expert alone has the competence under the Treaty to decide these differences. Having upheld his own competence, which comports with India’s view, the Neutral Expert will now proceed to the next (merits) phase of his proceeding. This phase will culminate in a final decision on the merits of each of the seven differences.

4. Being committed to preserving the sanctity and integrity of the Treaty, India will continue to participate in the Neutral Expert process so that the differences are resolved in a manner consistent with the provisions of the Treaty, which does not provide for parallel proceedings on the same set of issues. For this reason, India does not recognize or participate in the illegally constituted Court of Arbitration proceedings.

5. The Governments of India and Pakistan also remain in touch on the matter of modification and review of the Indus Waters Treaty, under Article XII (3) of the Treaty.