Indian Prime Minister Narendra Modi has declared that the country will no longer allow its water resources to flow beyond its borders, a move widely seen as a signal to Pakistan amid heightened bilateral tensions.

"India’s water will now be conserved, used, and channelled solely for India’s development," Modi said on Tuesday, without naming Pakistan directly. His remarks come just weeks after New Delhi suspended the decades-old Indus Waters Treaty (IWT), a landmark agreement that had governed the sharing of key river systems between the two nuclear-armed neighbours since 1960.

Tensions between India and Pakistan have escalated sharply following a militant attack in Indian-administered Kashmir last month that left 26 civilians dead. India has blamed Pakistan for supporting cross-border terrorism—an allegation Islamabad strongly denies.

Several rivers originating in India flow into Pakistan, supporting nearly 80% of the latter's agricultural output. Pakistani officials have previously warned that any disruption to water flow would be considered an act of war.

The Indus Waters Treaty, brokered by the World Bank, had withstood two wars and multiple military stand-offs. Its recent suspension marks a significant shift in a region where water remains a critical and politically sensitive resource.

Modi’s government has yet to provide details on how it plans to divert or store the water previously flowing to Pakistan. Experts caution that infrastructure such as dams and reservoirs would require significant investment and time to develop.

The United States urged restraint following Modi's remarks. “We continue to call on both India and Pakistan to seek a peaceful and responsible resolution that upholds long-term regional stability,” State Department spokesperson Tammy Bruce said.

The situation remains tense, with diplomatic ties between the neighbours continuing to deteriorate.

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