NEW DELHI: India and Nepal signed a significant agreement on Thursday to enhance rail trade connectivity, a move set to streamline freight movement and bolster Nepal’s access to key seaports.
The two nations exchanged a Letter of Exchange (LoE) amending their bilateral Treaty of Transit. The agreement was finalized during a 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.
The pact’s central provision facilitates rail-based freight, including bulk cargo, between Jogbani in India and Biratnagar in Nepal. It enables direct rail connectivity for both containerized and bulk shipments along this route, creating a seamless transport corridor from the major Indian ports of Kolkata and Visakhapatnam to the Nepal Customs Yard in Morang District.
This key rail link, constructed with grant assistance from the Indian government, was jointly inaugurated by the prime ministers of both countries on June 1, 2023.
Thursday’s agreement also liberalizes other key transit corridors, including Kolkata–Nautanwa (Sunauli) and Visakhapatnam–Nautanwa (Sunauli). Officials stated this will strengthen multimodal trade connectivity and significantly improve Nepal’s ability to trade with third countries.
India remains Nepal’s largest trade and investment partner. The ministers also reviewed other ongoing bilateral initiatives to enhance cross-border infrastructure, including the development of Integrated Check Posts, with the expectation that these new measures will further consolidate economic and commercial linkages.
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