The Indian government has indicated that the Indus Waters Treaty (IWT) with Pakistan is unlikely to operate in its existing form, reflecting a tougher stance on the long-standing water-sharing agreement amid continued concerns over Pakistan’s alleged support for cross-border terrorism.

According to a government source who spoke on the condition of anonymity, India is not actively pursuing a complete withdrawal from the World Bank-brokered 1960 treaty, but no longer considers it in its national interest to remain bound by the agreement in its current form. The option of exiting the treaty, however, remains under consideration.

Before placing the treaty in abeyance last year following the Pahalgam terrorist attack, India had formally sought a review and modification of the agreement, citing demographic changes, clean energy needs, and evolving climate conditions.

“The treaty, in its present form, will not function,” the source said. “If provisions relating to river water sharing are to be revived, they will have to be implemented under a different framework, not the existing one.”

The source added that India would monitor future developments before deciding whether to pursue the more far-reaching step of withdrawing from the treaty altogether.

Although the Indus Waters Treaty does not contain an exit clause, Indian officials point to Article 60 of the Vienna Convention on the Law of Treaties (VCLT), which provides that a material breach by one party may justify suspension of a treaty by the affected party. While neither India nor Pakistan is a signatory to the VCLT, India argues that customary international law could apply and that Pakistan’s alleged state support for terrorism constitutes a fundamental breach of treaty obligations.

Indian authorities maintain that, as a sovereign nation, India cannot be compelled to remain a party to an agreement that no longer serves its interests.

The remarks come as Pakistan continues efforts to internationalize the issue, describing India’s suspension of the treaty as unilateral and unlawful and warning that it threatens the water security and livelihoods of its estimated 240 million people.

Despite the treaty being in abeyance, India has continued to share flood warnings with Pakistan to help safeguard lives and property.

Indian officials also reject Pakistan’s claims regarding water scarcity, arguing that the country loses more Indus system water through inefficient surface runoff than India’s allocated share under the treaty. They further note that Pakistan has not constructed a major water storage project or significantly modernized its water management infrastructure since 1976, despite receiving nearly 80% of the Indus Basin’s waters under the agreement.

According to Indian officials, Pakistan’s primary challenge is water management rather than water availability.

India maintains that the central issue remains Pakistan’s alleged support for cross-border terrorism and has set no timeline for lifting the treaty’s suspension.

“The treaty will remain in abeyance until Pakistan credibly and irrevocably renounces its support for cross-border terrorism. That is the threshold condition,” the source said, adding that Pakistan continues to provide support and safe havens near the Line of Control to individuals and groups designated under the UN Security Council’s 1267 Sanctions Committee.

During the suspension period, India plans to maximize the use of its legitimate water rights through scientific basin management, modern engineering practices, infrastructure upgrades, and responsible stewardship of its water resources, the source added.