India, Nepal ink deal to boost trade through rail connectivity

• India and Nepal exchanged Letter of Exchange (LoE) amending the protocol to the Treaty of Transit between both countries in this regard.

• The LoE exchange happened here during a bilateral meeting between Commerce and Industry Minister Piyush Goyal and Nepal’s Minister for Industry, Commerce and Supplies Anil Kumar Sinha in New Delhi on November 13.

• 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.

• It will facilitate transport from the ports of Kolkata and Visakhapatnam to the Nepal Customs Yard cargo station located in Morang District, near Biratnagar in Nepal. 

• Jogbani-Biratnagar rail link, constructed with grant assistance from the government of India, was jointly inaugurated by the Prime Ministers of India and Nepal on June 1, 2023.

• 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 author is a trainer for Civil Services aspirants.)