Indian Economy News

India, Nepal Ink Deal to Boost Rail Trade Connectivity

India and Nepal have strengthened trade and connectivity ties with the signing of a Letter of Exchange (LoE) amending the Protocol to the Treaty of Transit during a bilateral meeting between Union Minister of Commerce & Industry, Mr. Piyush Goyal, and Minister for Industry, Commerce and Supplies, Government of Nepal, Mr. Anil Kumar Sinha in New Delhi. The amendment enables the movement of rail-based freight, including bulk cargo, between Jogbani (India) and Biratnagar (Nepal), expanding the scope of existing transit facilities and improving logistics efficiency.
The agreement extends rail connectivity across key transit corridors such as Kolkata-Jogbani, Kolkata-Nautanwa (Sunauli), and Visakhapatnam-Nautanwa (Sunauli), boosting multimodal trade routes for Nepal’s commerce with India and third countries. The new LoE operationalises direct rail connectivity along the Jogbani-Biratnagar line for both containerised and bulk goods, linking Indian ports in Kolkata and Visakhapatnam to Nepal’s customs yard in Morang District. The rail link, developed with Indian grant assistance, was inaugurated jointly by the Prime Ministers of India and Nepal in June 2023. Both sides reaffirmed their commitment to enhancing border trade infrastructure, including Integrated Check Posts and logistics hubs. India remains Nepal’s largest trade and investment partner, and the latest measures are expected to deepen bilateral economic integration and regional connectivity.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.