India and Nepal have signed a Letter of Exchange to update the Protocol to the Treaty of Transit, a significant step towards strengthening cross-border trade. The agreement was reached after meetings between India’s Commerce Minister Piyush Goyal and Nepal’s Industry and Commerce Minister Anil Kumar Sinha. With this change, both countries hope to improve rail connectivity and facilitate the flow of products across their shared border.
The updated arrangement enables direct rail transportation of goods, including bulk and containerised cargo, between Jogbani in India and Biratnagar in Nepal. This route expands Nepal’s trade network and meets the growing demand for reliable rail-based logistics. The Jogbani-Biratnagar railway line, which was built with Indian grant assistance and opened in June 2023, will now run at full capacity for commercial shipments.
Nepal’s access to key Indian transit routes has also been expanded. Trade routes connecting Kolkata, Visakhapatnam, and vital border crossings like Jogbani and Nautanwa will now provide more efficient cargo movement. The partnership is expected to make transit to Nepal’s Morang customs yard easier and result in faster turnaround times for traders.
Both governments pledged to improve border infrastructure, integrate Check Posts, and expand logistical hubs.
