India, Nepal ink new rail transit deal to boost multimodal trade, expand key corridors
The agreement, exchanged during a bilateral meeting in New Delhi, will facilitate the movement of rail-based freight between Jogbani (India) and Biratnagar (Nepal), including bulk cargo under an expanded definition
India and Nepal today took a significant step toward enhancing regional trade connectivity with the signing of a Letter of Exchange (LoE) amending the Protocol to the Treaty of Transit.
The agreement, exchanged during a bilateral meeting between Commerce and Industry Minister Shri Piyush Goyal and Nepal’s Minister for Industry, Commerce and Supplies Anil Kumar Sinha in New Delhi, will facilitate the movement of rail-based freight between Jogbani (India) and Biratnagar (Nepal), including bulk cargo under an expanded definition.
“Both countries interchanged Letter of Exchange (LoE) amending the Protocol to the Treaty of Transit between India and Nepal. This signing will facilitate the movement of rail-based freight between Jogbani (India) and Biratnagar (Nepal) including bulk cargo under an expanded definition. This liberalisation extends to key transit corridors- Kolkata-Jogbani, Kolkata–Nautanwa (Sunauli), and Visakhapatnam–Nautanwa (Sunauli), thereby strengthening multimodal trade connectivity between the two countries and Nepal’s trade with third countries,” Ministry of Commerce & Industry said in a statement.
The newly exchanged LoE enables direct rail connectivity along the Jogbani–Biratnagar rail link for both containerised and bulk cargo, allowing smoother transport from Indian ports at 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 1 June 2023,” added the statement.
During the meeting, both ministers reviewed ongoing efforts to enhance cross-border connectivity and trade facilitation, including the development of Integrated Check Posts (ICPs) and related infrastructure.
Emphasising the importance of economic integration, the leaders reaffirmed that India remains Nepal’s largest trade and investment partner, accounting for a substantial share of its external trade.
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