India and Nepal on Thursday signed a Letter of Exchange (LoE) to amend the Protocol to the Treaty of Transit, expanding rail-based trade routes and enhancing cross-border connectivity between the two countries.
The agreement was signed following a bilateral meeting between Union Minister of Commerce and Industry Piyush Goyal and Nepal’s Minister for Industry, Commerce and Supplies Anil Kumar Sinha in New Delhi.
Under the new LoE, rail freight movement between Jogbani (India) and Biratnagar (Nepal) has been brought under the transit framework, covering both containerized and bulk cargo. The arrangement also liberalizes movement along key trade corridors — Kolkata–Jogbani, Kolkata–Nautanwa (Sunauli), and Visakhapatnam–Nautanwa (Sunauli) — thereby strengthening multimodal connectivity and facilitating Nepal’s trade with third countries.
The Jogbani–Biratnagar rail link, constructed with grant assistance from the Government of India, was jointly inaugurated by the Prime Ministers of India and Nepal on June 1, 2023. With this latest agreement, the route will now enable direct rail transport of goods from the Indian ports of Kolkata and Visakhapatnam to Nepal Customs Yard in Morang District near Biratnagar, offering faster and more efficient cargo movement.
Both ministers also reviewed the progress of ongoing bilateral infrastructure projects, including the development of Integrated Check Posts (ICPs) and other trade facilitation initiatives aimed at improving logistics efficiency and cross-border movement.
India continues to be Nepal’s largest trade and investment partner, accounting for the bulk of its external trade. The Ministry of Commerce and Industry said the latest measures will further deepen economic and commercial ties, strengthen supply chain connectivity, and promote regional growth and prosperity.
