India, Nepal Sign LoE to Expand Rail-Based Transit Routes

On 13th November 2025, India and Nepal signed a Letter of Exchange (LoE) in New Delhi to amend the Protocol to the Treaty of Transit, expanding rail-based trade routes and strengthening cross-border connectivity.

Key Points

Expanded Rail Connectivity: The LoE facilitates rail freight movement between Jogbani (India) and Biratnagar (Nepal) for both containerized and bulk cargo.
Liberalized Trade Corridors: It eases rail movement along major routes — Kolkata–Jogbani, Kolkata–Nautanwa (Sunauli), and Visakhapatnam–Nautanwa (Sunauli) — improving multimodal connectivity.
Direct Port Access: The Jogbani–Biratnagar rail link, inaugurated in June 2023 with Indian grant assistance, will now allow direct rail transport from Kolkata and Visakhapatnam ports to Nepal’s customs yard in Morang district.
Boost to Nepal’s Global Trade: The expanded framework enables smoother transit for Nepal’s trade with third countries through Indian ports.
Infrastructure Progress: Both ministers noted progress on Integrated Check Posts (ICPs) and other cross-border trade facilitation projects.
Strengthening Economic Ties: India continues to be Nepal’s largest trade and investment partner. The new measures aim to deepen bilateral commercial ties and enhance regional connectivity.