India and Nepal have signed a new agreement allowing Nepal to transport all types of bulk cargo via the railway route to the Jogbani–Biratnagar border, expanding the scope of rail-based trade through India’s Kolkata and Visakhapatnam ports. Until now, Nepal could move only four categories of bulk cargo at a time through this route.
The Letter of Exchange (LoE), amending the protocol of the bilateral Treaty of Transit, was signed in New Delhi on Thursday during a meeting between Nepal’s Minister for Industry, Commerce and Supplies Anil Kumar Sinha and India’s Minister for Commerce and Industry Piyush Goyal.
Under the new arrangement, India has also agreed to extend similar railway transit facilities for bulk cargo up to the Nautanwa–Sunauli border, enabling direct rail access to Bhairahawa. Officials said the expansion is expected to significantly strengthen multimodal connectivity and enhance Nepal’s third-country trade by reducing transit time and costs.
Nepal and India first signed the Treaty of Trade and Transit in 1960, with the most recent renewal taking place on June 1, 2023. The treaty, which outlines transit routes and trade rights, is revisited every seven years.
During the meeting, Minister Sinha urged India to simplify the Bureau of Indian Standards (BIS) certification process, noting that Nepali exporters frequently face delays due to lengthy compliance procedures. The two ministers also reviewed progress on cross-border connectivity initiatives, including the development of Integrated Check Posts (ICPs) and associated infrastructure.
India currently permits Nepal to use Kolkata and Visakhapatnam ports for third-country trade. Nepal has additionally sought access to Mundra Port in Gujarat and Dhamra Port in Odisha, though those requests remain under consideration.
