Photo: The Ministry of Commerce and Industry, India.
Shri Piyush Goyal, the Minister for Commerce and Industry of India, and Anil Kumar Sinha, the Minister for Industry, Commerce and Supplies of Nepal, held a bilateral meeting today in New Delhi, resulting in a significant step to boost cross-border trade.
During the meeting, the two nations interchanged a Letter of Exchange (LoE) to amend the Protocol to the Treaty of Transit. This amendment is set to liberalize and enhance multimodal trade connectivity between India and Nepal, and crucially, Nepal's trade with third countries.
The primary benefit of the amendment is the expanded definition of cargo that can be moved by rail, including bulk cargo, between Jogbani (India) and Biratnagar (Nepal).
The new LoE formally enables direct rail connectivity along the Jogbani–Biratnagar rail link for both containerized and bulk cargo.
This new route facilitates transport directly from the Indian ports of Kolkata and Visakhapatnam to the Nepal Customs Yard cargo station in Morang District, near Biratnagar.
The rail link itself, which was constructed with grant assistance from the Government of India, was jointly inaugurated by the Prime Ministers of India and Nepal on June 1, 2023.
The liberalization is not limited to one route; it extends to key transit corridors, specifically, Kolkata–Jogbani, Kolkata–Nautanwa (Sunauli) and Visakhapatnam–Nautanwa (Sunauli)
The ministers welcomed continued bilateral efforts to improve cross-border connectivity and trade facilitation, including the development of Integrated Check Posts and other necessary infrastructure.
India remains Nepal’s largest trade and investment partner, and these new measures are expected to further consolidate the strong economic and commercial linkages between the two nations.
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