Bilateral Letter of Exchange Signed by India and Nepal to Facilitate Trade

• Commerce Ministers Piyush Goyal and Anil Kumar Sinha exchange LoE to amend the Treaty of Transit, enabling direct containerized and bulk cargo movement via the Jogbani-Biratnagar rail link.
• The rail link provides uninterrupted cargo flow from Kolkata and Visakhapatnam ports to Nepal Customs Yard, reducing logistics bottlenecks and operational costs.
• The amendment supports multimodal trade, infrastructure development, and streamlined customs, reinforcing bilateral economic ties and broader regional commerce.

Commerce and Industry Minister Piyush Goyal and his Nepalese counterpart, Anil Kumar Sinha, had a bilateral meeting in New Delhi as the two neighboring countries gear up to take forward the momentum in trade and transport connectivity. The two ministers exchanged a LoE on the amendment to the Protocol to the Treaty of Transit between the two countries aimed at facilitating the seamless movement of goods and enhancing economic cooperation.

The amended instrument allows for direct rail connectivity on the existing Jogbani-Biratnagar rail link, allowing the easy movement of both containerized and bulk cargo and thereby facilitating efficiency in cross-border trade, the Ministry of Commerce and Industry said in a statement.

The Ministry said the rail link will provide an uninterrupted movement of cargo from the ports of Kolkata and Visakhapatnam to the Nepal Customs Yard cargo station, giving a shorter and more reliable route for trade. This initiative is likely to add impetus to multimodal trade connectivity between India and Nepal and would help in the development of Nepal's trade with third countries.

This would open up new vistas for businesses on either side of the border. With cargo movement set to get smoother, the accord should now reduce logistics bottlenecks and operational costs, thereby increasing competitiveness for industries dependent on these trade routes.

The Jogbani-Biratnagar rail link, constructed with grant assistance from India, was jointly inaugurated by the Prime Ministers of India and Nepal on June 1, 2023. Since its inauguration, the rail line has served as a critical channel for trade and transport, and the recent amendments under the LoE are expected to further consolidate economic and commercial linkages. The initiative underlines the commitment of both governments toward expanding bilateral trade infrastructure and promoting regional integration through better connectivity.

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Beyond the LoE exchange, the meeting provided an avenue for the review of ongoing bilateral work to enhance cross-border connectivity and facilitate trade. Both sides reviewed progress on the development of Integrated Check Posts and other infrastructure projects that are expected to further ease customs processes and expedite the movement of goods.

Minister Goyal and Minister Sinha emphasized that continued collaboration in infrastructure development, digital trade facilitation, and policy harmonization were critical in ensuring that the full benefits from enhanced connectivity are achieved. The talks reflected a shared understanding that stronger transport and trade links are essential for sustaining economic growth and regional integration.

Through investing in critical infrastructure and streamlining trade procedures, India and Nepal are reinforcing not just their bilateral economic ties, but also supporting broader regional commerce and connectivity initiatives. The changes made to the Treaty of Transit and the extension of the Jogbani-Biratnagar rail link are considered major steps toward the development of a more efficient, resilient, and mutually gainful trade corridor between the two countries.