India-Pakistan Relations at Crossroads: Terror, Kashmir, and the Indus Waters Treaty

Amid renewed diplomatic posturing and escalating regional tensions, India and Pakistan remain locked in a standoff over terrorism, Kashmir, and water-sharing agreements. While Pakistan's Prime Minister Shehbaz Sharif has publicly expressed willingness to engage in peace talks, India has dismissed any dialogue beyond the issue of cross-border terrorism, asserting that there can be "no talks beyond terror."

External Affairs Minister S Jaishankar (PTI)

India’s Firm Stance on Terrorism

External Affairs Minister S. Jaishankar reaffirmed India’s hardened approach toward Islamabad during a recent interaction on May 13, 2025. “The Prime Minister has made it very clear that the only talks with Pakistan will be on terror,” he declared, emphasizing that Islamabad must dismantle its terrorist infrastructure and hand over wanted terrorists.

India’s stance follows the deadly Pahalgam terror attack in April, which killed 27 people, including civilians and tourists. The attack has been blamed on Pakistan-backed militant groups, prompting India to respond with diplomatic and strategic countermeasures.

Indus Waters Treaty Suspended

In a significant policy move, India suspended the 1960 Indus Waters Treaty (IWT), traditionally seen as a cornerstone of India-Pakistan relations. Jaishankar described the treaty as being in “abeyance” and linked its revival to tangible action from Pakistan on terrorism.

India has since accelerated projects to harness its share of water from the Indus river system, including on the Chenab, Jhelum, and Indus rivers. These efforts aim to divert more water for domestic usage, potentially impacting downstream flow into Pakistan.

Pakistan, which relies heavily on the Indus river system for agriculture and hydroelectricity, has condemned India's actions and is reportedly preparing legal action through international channels.

Pakistan’s Peace Offer—With Conditions

On May 15, 2025, Prime Minister Shehbaz Sharif, during a visit to Pakistan Air Force Base Kamra, stated: “We are ready to talk with [India] for peace.” However, he attached a longstanding condition: the resolution of the Kashmir dispute.

Sharif reiterated that “durable peace in the region is linked with the resolution of the Jammu and Kashmir issue,” which he termed the “unfinished agenda of partition.” He called for India to reverse the revocation of Article 370 and restore Jammu and Kashmir’s special status—demands India has firmly rejected.

India's Response on Kashmir

In response to Sharif’s overture, India reiterated that its position on Kashmir is non-negotiable. Jaishankar declared that the only conversation to be had regarding Jammu and Kashmir is the “vacation of illegally occupied Indian territories in Pakistan-Occupied Kashmir (PoK).”

India has long maintained that the entirety of the region is an integral part of its sovereign territory, and no third-party mediation or conditional talks will be entertained.

Bilateral Fallout and Regional Impact

Following the Pahalgam attack and subsequent escalations:

• India expelled multiple Pakistani diplomats and downgraded diplomatic ties.

• Pakistan responded by suspending the Simla Agreement, closing its airspace to Indian aircraft, and halting trade routes.

• Military tensions flared along the Line of Control (LoC), with both sides accusing each other of ceasefire violations despite a U.S.-brokered ceasefire announced on May 10.

The situation has triggered international concern, particularly due to the nuclear capabilities of both countries. Global powers, including the United States and China, have urged restraint and renewed calls for dialogue.

Domestic Reactions

Within India, the suspension of the Indus Waters Treaty and the broader hardline stance have sparked political debate. Jammu and Kashmir Chief Minister Omar Abdullah called for the resumption of the Tulbul Navigation Project, a long-shelved initiative on the Jhelum river, arguing it could serve as strategic leverage.

In contrast, former Chief Minister Mehbooba Mufti labeled any attempt to “weaponize water” as “inhumane,” warning against collective punishment of civilians.

Conclusion

As the India-Pakistan standoff continues to unfold, both nations remain entrenched in their positions. While Pakistan insists on discussing Kashmir, India refuses to entertain any talks until Islamabad demonstrates verifiable action against terrorism. The suspension of the Indus Waters Treaty, increased military alertness, and diplomatic hostilities underline a deepening crisis—one that threatens regional stability unless resolved through substantive and unconditional dialogue.

(Source: Hindustan Times, Mint, NDTV)