India, Nepal signs LoE to boost rail freight connectivity

India and Nepal on 13 November, interchanged Letter of Exchange (LoE) amending the Protocol to the Treaty of Transit to boost rail freight connectivity in both nations.

According to the press release, the agreement is the facilitation of rail-based freight movement, including an expanded definition of bulk cargo, between Jogbani (India) and Biratnagar (Nepal).

This link will allow goods from the Indian ports of Kolkata and Visakhapatnam to travel directly to the Nepal Customs Yard cargo station in Morang District, near Biratnagar.

The Jogbani–Biratnagar rail link was constructed with grant assistance from the Government of India and was jointly inaugurated by the Prime Ministers of both countries on June 1, 2023.

The liberalisation measures extend to key transit corridors, strengthening Nepal’s access to the sea and its trade with third countries. The affected corridors include: Kolkata–Jogbani, Kolkata–Nautanwa (Sunauli), Visakhapatnam–Nautanwa (Sunauli).

The bilateral meeting, held in New Delhi, saw the participation of Piyush Goyal, India’s Minister of Commerce and Industry, and Anil Kumar Sinha, Nepal’s Minister for Industry, Commerce and Supplies.

These new measures are anticipated to further solidify the already deep economic and commercial linkages between the two countries. The release highlighted India’s role as Nepal’s largest trade and investment partner, accounting for a significant share of its external trade.