India and Nepal exchanged a Letter of Exchange (LoE) amending the Protocol to the Treaty of Transit and strengthening multimodal trade connectivity between the two countries.
As per the Ministry of Commerce & Industry, 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, including 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.
The development came at a bilateral meeting between Commerce and Industry Minister Piyush Goyal and his Nepalese counterpart, Anil Kumar Sinha, held in New Delhi.
The LoE enables direct rail connectivity along the Jogbani–Biratnagar rail link for both containerised 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.
The rail link was constructed with grant assistance from the Government of India, and jointly inaugurated by the Prime Ministers of India and Nepal on 1 June 2023.
At the meeting, both the leaders also welcomed ongoing bilateral initiatives to enhance cross-border connectivity and trade facilitation, including the development of Integrated Check Posts and other 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.