Nepal and India have signed an agreement which will facilitate the movement of rail-based freight between Jogbani (India) and Biratnagar (Nepal) including bulk cargo under an expanded definition.

The agreement was signed in a bilateral meeting between Anil Kumar Sinha, Minister for Industry, Commerce, and Supplies and his Indian counterpart Piyush Goyal, Minister for Commerce and Industry India. 

This liberalization 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, according to a press statement issued by India. 

The Letter of Exchange (LoE) enables direct rail connectivity along the Jogbani–Biratnagar rail link for both containerized and bulk cargo, facilitating transport from the ports of Kolkata and Visakhapatnam to the Nepal Customs Yard cargo station located in Morang District, near Biratnagar in Nepal. 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.

The meeting also welcomed ongoing bilateral initiatives to enhance cross-border connectivity and trade facilitation, including the development of Integrated Check Posts and other infrastructure. India remains Nepal’s largest trade and investment partner, accounting for a significant share of its external trade, according to the statement.  These new measures are expected to further consolidate economic and commercial linkages between the two countries and beyond.