New Delhi: In a significant step towards enhancing bilateral trade and connectivity, India and Nepal have agreed to facilitate rail-based freight movement between Jogbani in India and Biratnagar in Nepal. The move, aimed at strengthening trade links and easing cargo transport, was formalized through a bilateral meeting between Union Commerce Minister Piyush Goyal and Nepal’s Minister for Industry, Commerce, and Supplies, Anil Kumar Sinha, in New Delhi.

As part of the agreement, both countries exchanged a Letter of Exchange (LoE) amending the Protocol to the Treaty of Transit between India and Nepal. This amendment explicitly allows the movement of rail-based freight along the Jogbani–Biratnagar link, including bulk cargo under an expanded definition. The initiative is expected to boost rail trade connectivity between the two nations and facilitate efficient transportation of goods.

The newly amended protocol extends to other key transit corridors as well, including Kolkata–Jogbani, Kolkata–Nautanwa (Sunauli), and Visakhapatnam–Nautanwa (Sunauli). These corridors form crucial arteries for multimodal trade between India and Nepal, allowing Nepal to enhance its trade with third countries through improved connectivity to Indian ports.

Under the agreement, the direct rail connectivity along the Jogbani–Biratnagar link will support both containerized and bulk cargo transport. Goods can now move seamlessly from India’s major ports, such as Kolkata and Visakhapatnam, to the Nepal Customs Yard cargo station in Morang district near Biratnagar. This 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.

The meeting also highlighted ongoing bilateral efforts to further improve cross-border connectivity and trade facilitation. Initiatives include the development of Integrated Check Posts (ICPs) and other infrastructure enhancements, which will streamline customs procedures and reduce logistical bottlenecks for traders on both sides of the border.

India continues to be Nepal’s largest trade and investment partner, accounting for a significant portion of Nepal’s external trade. The new rail link and amended protocol are expected to further consolidate economic and commercial linkages between the two nations, providing a more efficient and cost-effective channel for goods movement.

Commerce Ministry officials noted that this development is in line with broader efforts to strengthen economic ties between India and Nepal while promoting regional connectivity. By enabling smoother cargo movement, the Jogbani–Biratnagar link is also expected to facilitate trade in bulk commodities, agricultural products, and other goods, benefiting businesses and traders in both countries.

The agreement underscores the commitment of both governments to enhancing trade infrastructure and promoting seamless cross-border commerce. By providing an alternative to road transport and leveraging rail connectivity, the initiative is expected to reduce transportation costs, improve delivery timelines, and support sustainable trade growth in the region.

This development builds upon the strong historical trade relations between India and Nepal. The rail link, funded and supported by India, represents a tangible example of bilateral cooperation and strategic partnership. With expanded rail-based freight facilities, Nepal can efficiently access Indian ports, which in turn strengthens its position in regional trade networks and enhances its trade competitiveness.

Both sides emphasized that trade facilitation, logistics efficiency, and infrastructure development remain high priorities. The Jogbani–Biratnagar rail corridor, integrated with other key transit routes, will help improve cargo handling, reduce transit times, and support overall economic growth in both countries.

In addition to the direct benefits for traders, this connectivity is expected to have wider economic implications. By boosting exports and imports via rail, the initiative can contribute to employment generation, industrial growth, and broader regional economic development. Enhanced trade links between India and Nepal also promote deeper cooperation across sectors, encouraging investment and collaboration in areas such as manufacturing, agriculture, and logistics services.

The amendment to the Protocol of the Treaty of Transit represents a strategic step towards modernizing trade infrastructure, facilitating smoother movement of goods, and strengthening the long-standing economic partnership between India and Nepal. Both countries reaffirmed their commitment to continue working together on initiatives that enhance connectivity, promote trade, and support inclusive growth.

Officials from both sides agreed that the Jogbani–Biratnagar rail link will serve as a model for future cross-border trade projects. The corridor is expected to not only improve bilateral commerce but also contribute to regional integration by linking Nepal more effectively with India’s national transportation network and ports.

The meeting concluded on a positive note, with both ministers expressing satisfaction at the progress made and the potential for future collaboration. With the Letter of Exchange now in effect, traders and businesses in both countries can anticipate improved freight operations, greater efficiency in cargo transport, and expanded trade opportunities that benefit the economies of India and Nepal alike.

This step marks another milestone in the ongoing efforts to strengthen India-Nepal relations and underscores the shared commitment to fostering mutually beneficial trade and economic ties.