On July 19, 2025, China launched the construction of the world’s largest hydropower dam on the Yarlung Tsangpo River in Tibet, a project with far-reaching implications for India and the region. The $167.8 billion initiative, unveiled by Chinese Premier Li Qiang near the Indian border, has sparked concerns in New Delhi over its strategic and environmental impact, while also drawing criticism from Tibetan communities.

The dam, featuring five hydropower stations, is projected to generate 300 billion kilowatt-hours annually—triple the output of China’s Three Gorges Dam. Dubbed the “project of the century,” its location just 30 kilometers from Arunachal Pradesh, a region China claims as “South Tibet,” adds to the geopolitical tension.

India fears the dam could enable China to control water flow, potentially disrupting agriculture and livelihoods in the northeast. Arunachal Pradesh Chief Minister Pema Khandu has labeled it a “ticking water bomb,” warning of catastrophic floods. The Indian government has urged Beijing to ensure downstream regions are protected, but China’s suspension of hydrological data sharing in 2022 has heightened distrust.

Environmental groups warn of irreversible damage to Tibet’s fragile ecosystems, including biodiversity loss, seismic risks, and disrupted sediment flow. Despite China’s assurances of ecological conservation, skepticism persists due to a lack of transparency.

In response, India is fast-tracking its own hydropower projects, like the Siang Upper Multipurpose Project, to safeguard its water rights. Diplomatic efforts include pushing for data sharing and adherence to international water norms, though China’s non-signatory status to the UN Watercourses Convention complicates matters.

The dam’s inauguration marks a critical juncture in South Asia’s water geopolitics, highlighting the need for global action against China’s potential weaponization of water resources.