India and Nepal on Thursday signed a Letter of Exchange (LoE) to amend the Protocol to the Treaty of Transit, enabling expanded rail-based trade routes and boosting cross-border connectivity between the two nations.
The agreement was formalized following a bilateral meeting between India’s Minister of Commerce & 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) will be permitted for both containerized and bulk cargo, creating a more flexible and efficient transit framework. The agreement also liberalizes freight movement along key trade corridors, including:
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Kolkata–Jogbani
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Kolkata–Nautanwa (Sunauli)
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Visakhapatnam–Nautanwa (Sunauli)
This expansion strengthens multimodal connectivity and is expected to significantly enhance Nepal’s access to international markets.
The Jogbani–Biratnagar rail link, constructed with Government of India grant assistance, was jointly inaugurated by the Prime Ministers of India and Nepal on June 1, 2023. With the amended protocol, goods can now move directly from the ports of Kolkata and Visakhapatnam to the Nepal Customs Yard cargo station in Morang District, improving trade efficiency and cutting transit time.
Both ministers also reviewed progress on ongoing bilateral infrastructure initiatives, including the development of Integrated Check Posts (ICPs) and other trade-facilitation measures.
India remains Nepal’s largest trade and investment partner, accounting for the majority of its external trade. According to the Ministry of Commerce & Industry, the new measures will further deepen economic ties and strengthen regional connectivity across South Asia.
