India and Nepal have taken a major step toward deeper economic cooperation by signing a Letter of Exchange (LoE) that expands rail-based freight corridors between the two nations. The agreement, signed in New Delhi on 13 November 2025, amends the Protocol to the Treaty of Transit, enabling rail movement of both containerised and bulk cargo on the Jogbani–Biratnagar route.
The LoE was exchanged during a bilateral meeting between Piyush Goyal, India’s Minister for Commerce & Industry, and Anil Kumar Sinha, Nepal’s Minister for Industry, Commerce and Supplies.
According to the Press Information Bureau, the amendment broadens the definition of cargo and permitted routes, opening up direct rail connectivity from Indian ports to Nepal’s Morang district via the Jogbani–Biratnagar link. The move enhances access to key multimodal trade corridors including:
This significantly strengthens Nepal’s transit options for international trade.
The updated protocol allows:
The Jogbani–Biratnagar rail connection was jointly inaugurated on 1 June 2023 by the prime ministers of both countries and was built through Indian grant assistance.
India remains Nepal’s largest trade and investment partner, and this expanded rail facility is expected to further strengthen economic integration and Nepal’s access to global markets.
The press note stated:
“Both countries exchanged a Letter of Exchange (LoE) amending the Protocol to the Treaty of Transit between India and Nepal… This signing will facilitate the movement of rail-based freight between Jogbani (India) and Biratnagar (Nepal), including bulk cargo under an expanded definition.”
While ministerial quotes were not provided, the focus remained on rail-based freight expansion and improved trade corridor efficiency.
Programme Significance: ‘Neighbourhood First’ and Regional Integration
The rail transit enhancement aligns with India’s Neighbourhood First policy and Nepal’s broader regional connectivity goals. Projects such as Jogbani–Biratnagar and Jayanagar–Bardibas reflect deepening trade infrastructure cooperation between the two nations.
The revised treaty framework acknowledges evolving trade patterns, with Nepal seeking diversified port access and India strengthening its strategic and logistical footprint in the region.
Government of India – Ministry of Commerce & Industry
Responsible for negotiating trade and transit treaties and facilitating customs and logistics frameworks with neighbouring countries.
Government of Nepal – Ministry for Industry, Commerce and Supplies
Handles industrial and trade policy, cross-border logistics, and infrastructure projects, and works jointly with India to implement transit treaty amendments and rail-connectivity initiatives.
1. Trade and Logistics Impact
2. Policy Significance
3. Implementation Challenges
4. Regional and Strategic Dimension
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