In a significant step toward deepening economic ties, India and Nepal have formalised an agreement to enhance rail-based trade connectivity, opening new avenues for seamless cargo movement between the two nations.

The breakthrough came during a bilateral meeting on Thursday, in New Delhi between India's Commerce and Industry Minister, Shri Piyush Goyal and Nepal's Minister for Industry, Commerce and Supplies, Mr. Anil Kumar Sinha.

The two leaders exchanged a Letter of Exchange (LoE) amending the Protocol to the Treaty of Transit, paving the way for expanded rail freight operations.

Jogbani-Biratnagar Rail Link Opens for Bulk and Container Cargo

This amendment specifically allows rail transport of both containerised and bulk cargo along the Jogbani (India) to Biratnagar (Nepal) route. It broadens access to major transit corridors, including Kolkata-Jogbani, Kolkata-Nautanwa (Sunauli) and Visakhapatnam-Nautanwa (Sunauli).

"This liberalization 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," according to the press release from India's Ministry of Commerce and Industry.

As a result, goods can now move more efficiently from Indian ports in Kolkata and Visakhapatnam directly to the Nepal Customs Yard cargo station in Morang District, near Biratnagar.

The Jogbani–Biratnagar rail link itself, built with Indian grant assistance, was jointly inaugurated by the Prime Ministers of both countries on 1 June 2023. Officials say this upgrade will not only bolster bilateral trade but also ease Nepal's commerce with third countries through multimodal routes.

Infrastructure Boost: Integrated Check Posts and Cross-Border Upgrades

Beyond the rail pact, both sides highlighted ongoing efforts to improve cross-border infrastructure. This includes the development of Integrated Check Posts (ICPs) and other facilities aimed at streamlining trade. India continues to dominate as Nepal's top trade and investment partner, handling the bulk of its external commerce. These enhancements are poised to tighten economic bonds further.

Security and Border Coordination

On the security front, recent high-level engagements have complemented the trade push. The 8th India-Nepal SSB-APF Coordination Meeting, led by the Director General of India's Sashastra Seema Bal (SSB) and the Inspector General of Nepal's Armed Police Force (APF), wrapped up on 18 November 2024. Participants committed to better coordination for hassle-free cross-border movement of citizens along the open frontier.

Earlier, the 13th meeting of the India-Nepal Joint Working Group (JWG) on Border Management took place in Pokhara, Nepal, on 27-28 March 2025.

Discussions focused on maintaining border pillars, curbing cross-border crimes, upgrading infrastructure like ICPs, roads and railways and collaborating on disaster risk reduction.