Prime Minister Narendra Modi said Tuesday that water from India that once flowed across borders will be stopped, days after suspending a key water treaty with arch-rival Pakistan.

New Delhi has blamed Islamabad for backing a deadly attack on tourists on the Indian side of contested Kashmir last month, sparking a series of heated threats and diplomatic tit-for-tat measures.

Pakistan rejects the accusations, and the two nuclear-armed neighbours have exchanged nightly gunfire since April 24 along the de facto border in Kashmir, the militarised Line of Control, according to the Indian army.

Modi did not mention Islamabad specifically, but his speech comes after New Delhi suspended its part of the 65-year-old Indus Waters Treaty, which governs water critical to parched Pakistan for consumption and agriculture.

"India's water used to go outside, now it will flow for India", Modi said in a speech in New Delhi.

"India's water will be stopped for India's interests, and it will be utilised for India."

Pakistan has warned that tampering with its rivers would be considered "an act of war".

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