LoE exchanged to expand India–Nepal transit routes and enhance regional trade links
.jpg "India, Nepal Sign Deal to Boost Rail Trade Connectivity") |
| Anil Kumar Sinha, Minister for Industry, Commerce and Supplies, Government of Nepal - Piyush Goyal, Minister of Commerce and Industry, Government of India |
Kathmandu: India and Nepal have taken another major step toward strengthening their trade and connectivity ties, with both nations signing a Letter of Exchange (LoE) to amend the Protocol to the Treaty of Transit.
The signing took place during a bilateral meeting between Piyush Goyal, Minister of Commerce and Industry, Government of India, and Anil Kumar Sinha, Minister for Industry, Commerce and Supplies, Government of Nepal, held in New Delhi on November 13.
The newly signed LoE will enable the movement of rail-based freight, including bulk cargo, between Jogbani (India) and Biratnagar (Nepal) under an expanded definition of cargo categories. The liberalization extends to key transit corridors—Kolkata–Jogbani, Kolkata–Nautanwa (Sunauli), and Visakhapatnam–Nautanwa (Sunauli)—significantly enhancing multimodal trade connectivity between the two countries and facilitating Nepal’s trade with third nations.
With this agreement, direct rail connectivity is now operational along the Jogbani–Biratnagar rail link for both containerized and bulk cargo. The route will connect Nepal’s Customs Yard cargo station in Morang District directly with India’s ports at Kolkata and Visakhapatnam, allowing smoother and faster movement of goods. Notably, this rail link was constructed with grant assistance from the Government of India and was jointly inaugurated by the Prime Ministers of India and Nepal on June 1, 2023.
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| Left: Anil Kumar Sinha, Minister for Industry, Commerce and Supplies, Government of Nepal - Right: Piyush Goyal, Minister of Commerce and Industry, Government of India |
During the meeting, both sides reaffirmed their commitment to enhancing cross-border connectivity through ongoing infrastructure projects, including the development of Integrated Check Posts (ICPs) and other trade facilitation measures.
India continues to be Nepal’s largest trade and investment partner, accounting for a major share of its external trade. The new arrangements under the LoE are expected to further consolidate economic and commercial linkages between the two nations, promote seamless regional connectivity, and create new opportunities for businesses on both sides of the border.
