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India and Nepal Boost Trade: Historic Rail Deal Expands Key Transit Corridors

India and Nepal have strengthened their trade partnership through a new rail connectivity agreement. The deal facilitates smoother movement of freight between Jogbani in India and Biratnagar in Nepal. This expansion covers multiple key transit corridors including routes through Kolkata and Visakhapatnam. The agreement represents another step in deepening economic ties between the neighboring nations.

Key Points: India Nepal Rail Trade Deal Signed by Goyal and Sinha

  • Exchange of Letter of Exchange amends Protocol to Treaty of Transit between nations
  • Facilitates rail freight movement between Jogbani and Biratnagar for bulk cargo
  • Expands connectivity through Kolkata-Jogbani and Visakhapatnam-Nautanwa corridors
  • Enables direct rail transport to Nepal Customs Yard in Morang District
2 min read

India, Nepal ink deal to boost rail trade connectivity

India and Nepal sign agreement to enhance rail freight connectivity, expanding cargo movement through Jogbani-Biratnagar link and key transit corridors.

"This liberalisation extends to key transit corridors... strengthening multimodal trade connectivity between the two countries - Union Ministry of Commerce & Industry"

New Delhi November 13

India and Nepal signed a deal to boost the rail trade connectivity after a bilateral meeting held between Union Commerce and Industry Minister Piyush Goyal and his Nepal counterpart Anil Kumar Sinha on Thursday.

According to a press release by the Union Ministry of Commerce & Industry, both countries exchanged a Letter of Exchange (LoE) amending the Protocol to the Treaty of Transit between India and Nepal.

The ministry added that this signing will facilitate the movement of rail-based freight between Jogbani (India) and Biratnagar (Nepal), including bulk cargo under an expanded definition.

This liberalisation extends to key transit corridors- Kolkata-Jogbani, Kolkata-Nautanwa (Sunauli), and Visakhapatnam-Nautanwa (Sunauli), thereby strengthening multimodal trade connectivity between the two countries and Nepal's trade with third countries.

The aforementioned Letter of Exchange (LoE) enables direct rail connectivity along the Jogbani-Biratnagar rail link for both containerised and bulk cargo, facilitating transport from the ports of Kolkata and Visakhapatnam to the Nepal Customs Yard cargo station located in Morang District, near Biratnagar in Nepal.

This rail link, constructed with grant assistance from the Government of India, was jointly inaugurated by the Prime Ministers of India and Nepal on 1 June 2023.

The meeting also welcomed ongoing bilateral initiatives to enhance cross-border connectivity and trade facilitation, including the development of Integrated Check Posts and other infrastructure.

India remains Nepal's largest trade and investment partner, accounting for a significant share of its external trade. These new measures are expected to further consolidate economic and commercial linkages between the two countries and beyond, the ministry added.

- ANI

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Reader Comments

P
Priya S
As someone from Kolkata, I'm happy to see our port being utilized for Nepal's trade. This will create more business opportunities for traders here. Hope the implementation is smooth and benefits reach the common people on both sides.
A
Aman W
While this is positive, I hope the infrastructure development doesn't get delayed like some previous projects. Timely execution is crucial for trade benefits. Also, let's ensure environmental considerations are properly addressed.
S
Sarah B
Stronger India-Nepal relations are crucial for regional stability. The multimodal connectivity through Kolkata and Visakhapatnam ports will make Nepal less dependent on single routes. Smart diplomatic move that benefits both nations economically.
K
Karthik V
This rail connectivity will reduce transportation costs significantly. As an exporter, I'm looking forward to faster movement of goods to Nepal. The expanded definition of bulk cargo is particularly helpful for agricultural products.
N
Nisha Z
Good to see India continuing to support Nepal's development. The grant assistance for rail infrastructure shows our commitment to neighborhood first policy. Hope this strengthens people-to-people connections too! 🙏

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