KATHMANDU: India and Nepal signed a key amendment to their Treaty of Transit, enabling smoother and broader rail-based trade between the two countries.

The agreement was formalized during a bilateral meeting between Indian Commerce and Industry Minister Piyush Goyal and Nepal’s Industry, Commerce and Supplies Minister Anil Kumar Sinha in New Delhi. Both sides exchanged a Letter of Exchange (LoE) amending the Protocol to the Treaty of Transit, a move aimed at enhancing cross-border freight movement and regional connectivity.

Under the new arrangement, rail-based cargo transport — including bulk goods — will now operate directly along the Jogbani–Biratnagar rail link, with access to major transit corridors such as Kolkata–Jogbani, Kolkata–Nautanwa (Sunauli), and Visakhapatnam–Nautanwa (Sunauli). This liberalization is expected to significantly improve Nepal’s trade efficiency with India and third countries by reducing logistical costs and transit time.

The Jogbani–Biratnagar rail line, built with Indian grant assistance, was inaugurated jointly by the prime ministers of both countries in June 2023. The new LoE allows the movement of both containerized and bulk cargo directly from India’s ports in Kolkata and Visakhapatnam to Nepal’s customs yard in Morang District, near Biratnagar.

During the meeting, both ministers also reviewed ongoing efforts to strengthen cross-border trade and infrastructure, including the construction of new Integrated Check Posts (ICPs) and modernization of existing border facilities.

India remains Nepal’s largest trading partner and investor, accounting for a major portion of its external trade. Officials from both sides said the new measures will deepen economic and commercial linkages, promote multimodal transport integration, and strengthen the long-standing partnership between the two neighbors.