India and Nepal on Thursday signed an agreement to strengthen rail-based freight movement between the two countries, marking a significant step toward enhancing bilateral trade and regional connectivity.
The pact facilitates railway freight movement between Jogbani (India) and Biratnagar (Nepal), expanding the scope to include bulk cargo under a liberalised framework. It also extends to key transit corridors, Kolkata–Jogbani, Kolkata–Nautanwa (Sunauli), and Visakhapatnam–Nautanwa (Sunauli), aimed at improving multimodal trade connectivity between the two neighbours and Nepal’s trade with third countries.
The two sides exchanged a Letter of Exchange amending the Protocol to the Treaty of Transit between India and Nepal in the presence of India’s Commerce Minister Piyush Goyal and Nepal’s Industry, Commerce, and Supplies Minister Anil Kumar Sinha.
The Letter of Exchange enables direct rail connectivity along the Jogbani–Biratnagar rail link for both containerised and bulk cargo. It will facilitate the transport of goods from Indian ports in Kolkata and Visakhapatnam to the Nepal Customs Yard cargo station located in Morang District, near Biratnagar.
Constructed with grant assistance from the Government of India, the Jogbani–Biratnagar rail link was jointly inaugurated by the Prime Ministers of India and Nepal on June 1, 2023. The new agreement operationalises that connectivity to support large-scale and cost-effective freight transport.
Officials from both countries said the move will not only ease logistics but also help reduce costs and transit times for Nepal-bound trade through Indian ports. The meeting also reviewed ongoing bilateral initiatives to improve cross-border connectivity, including the development of Integrated Check Posts (ICPs) and supporting trade infrastructure.
India continues to be Nepal’s largest trade and investment partner, accounting for a substantial share of its external trade. This new arrangement is expected to strengthen economic integration and enhance commercial ties between the two nations.
The agreement follows a series of recent cooperation initiatives between India and Nepal. On October 29, both countries signed agreements to establish two joint venture entities for developing high-capacity cross-border power transmission lines. These joint ventures, between Powergrid Corporation of India (a Maharatna PSU) and the Nepal Electricity Authority, were inked in the presence of India’s Union Power Minister Manohar Lal and Nepal’s Energy, Water Resources and Irrigation Minister Kulman Ghising.
Under the power transmission agreement, one joint venture will be incorporated in India and another in Nepal to build the necessary infrastructure for cross-border electricity exchange.
Together, the recent trade and energy agreements underscore growing economic cooperation between India and Nepal, reinforcing their shared commitment to regional connectivity and sustainable development.
