India, Nepal Strengthen Trade Ties With New Jogbani–Biratnagar Rail Freight Link

India and Nepal have taken another major step toward deepening their economic and infrastructure cooperation with the launch of the Jogbani–Biratnagar rail freight link. The development, announced by India’s Commerce Ministry on Thursday, comes after both countries exchanged a Letter of Exchange (LoE) amending the Protocol to the existing Treaty of Transit. The latest agreement expands freight operations between the two countries, allowing the movement of both containerised and bulk cargo via rail, thereby significantly improving bilateral trade logistics.

The announcement followed a high-level meeting in New Delhi between India’s Commerce and Industry Minister Piyush Goyal and Nepal’s Minister for Industry, Commerce, and Supplies, Anil Kumar Sinha. “This signing will facilitate the movement of rail-based freight between Jogbani (India) and Biratnagar (Nepal), including bulk cargo under an expanded definition,” the ministry said in its official statement. Both nations affirmed that this enhanced connectivity would lower transit costs, streamline cargo movement, and strengthen trade corridors that support Nepal’s access to global markets.

The LoE expands Nepal’s transit options to key Indian ports, including Kolkata and Visakhapatnam, under the routes Kolkata–Jogbani, Kolkata–Nautanwa (Sunauli), and Visakhapatnam–Nautanwa (Sunauli). The new agreement will allow smooth rail transport of goods from these ports to the Nepal Customs Yard cargo station at Biratnagar in Morang district. The Jogbani–Biratnagar rail line, developed with grant assistance from the Government of India, had earlier been inaugurated jointly by the prime ministers of both nations on June 1, 2023. Its operationalisation for bulk and container freight marks a major milestone in bilateral connectivity.

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Officials noted that the upgraded freight link will not only enhance Nepal’s trade efficiency with India but also improve its access to third-country markets through Indian ports. The meeting also discussed ongoing bilateral projects aimed at modernising Integrated Check Posts (ICPs) and upgrading road, rail, and customs infrastructure at critical border crossings. Both ministers reaffirmed their governments’ commitment to deepening the partnership through policy coordination and technical cooperation to facilitate faster clearance and movement of goods.

India continues to be Nepal’s largest trading and investment partner, accounting for a majority of its cross-border trade and energy cooperation. With the Jogbani–Biratnagar corridor now fully integrated into the rail network, both sides expect a significant increase in trade volumes and economic activity along the route. The initiative aligns with India’s “Neighbourhood First” policy and underscores the long-standing partnership built on shared geography, culture, and economic aspirations.

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