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 between the two countries and enhancing cross-border connectivity.
The agreement was signed following a bilateral meeting between India’s Minister of Commerce and Industry Piyush Goyal and Nepal’s Minister for Industry, Commerce and Supplies Anil Kumar Sinha in New Delhi.
The new LoE facilitates the movement of rail freight between Jogbani (India) and Biratnagar (Nepal), including both containerized and bulk cargo, under an expanded transit framework. It also liberalizes movement along key trade corridors – Kolkata–Jogbani, Kolkata–Nautanwa (Sunauli), and Visakhapatnam -Nautanwa (Sunauli) – strengthening multimodal connectivity between the two neighbours and boosting 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 the latest agreement, the route will now enable direct rail transport of goods from the Indian ports of Kolkata and Visakhapatnam to the Nepal Customs Yard cargo station in Morang District near Biratnagar.
Both ministers welcomed the progress of ongoing bilateral initiatives to improve cross-border infrastructure, 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. The Ministry of Commerce & Industry said that the new measures will further strengthen the economic and commercial ties between the two nations and enhance regional connectivity.
