India and Nepal Sign Deal to Strengthen Rail Trade Connectivity

India and Nepal have taken a significant step to deepen bilateral trade and streamline cross-border logistics by signing a Letter of Exchange (LoE) that amends the Protocol to the Treaty of Transit. 

The agreement, finalised during a meeting between India’s Commerce Minister Piyush Goyal and Nepal’s Industry and Commerce Minister Anil Kumar Sinha, enhances rail-based cargo movement and widens multimodal transit options for Nepal.

Expanded Rail Connectivity Between The Two Countries

Under this amendment, rail-based freight, including bulk cargo, can now move directly between Jogbani in India and Biratnagar in Nepal. This widens the scope of existing transit routes and strengthens the logistical backbone of Nepal’s trade with India and third-country partners. 

The Jogbani-Biratnagar railway line, built with Indian grant support and inaugurated in June 2023, will now become fully operational for containerised as well as bulk shipments.

Strengthening Multimodal Trade Corridors

The updated protocol also enhances Nepal’s access to Indian ports and transit corridors such as Kolkata-Jogbani, Kolkata-Nautanwa (Sunauli), and Visakhapatnam-Nautanwa (Sunauli). 

By enabling smoother movement of cargo to Nepal’s Morang customs yard, the agreement supports faster, more reliable supply chains. Both governments reiterated their commitment to upgrading Integrated Check Posts, border infrastructure and logistics hubs to ensure seamless movement of goods.

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Conclusion

The revised transit protocol marks a decisive milestone in India-Nepal economic cooperation. Beyond simplifying cargo transfers, the new rail corridors are expected to improve trade reliability, lower logistics costs and widen efficient routes for Nepal’s international commerce. As both countries continue investing in border and transport infrastructure, the latest LoE reinforces a long-term commitment to deeper regional integration and mutually beneficial connectivity.

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