India–Nepal Sign LoE to Boost Jogbani–Biratnagar Rail Trade

In November 2025, India and Nepal exchanged a Letter of Exchange (LoE) to amend the protocol to the transit treaty for the Jogbani-Biratnagar Corridor, significantly increasing rail-based trade connectivity between the two countries.

• In November 2025, India and Nepal exchanged a Letter of Exchange (LoE) to amend the protocol to the transit treaty for the Jogbani-Biratnagar Corridor, significantly increasing rail-based trade connectivity between the two countries.
• This Letter of Exchange was signed during a bilateral meeting in New Delhi between India’s Minister of Commerce & Industry (MoC&I) Piyush Goyal and Nepal’s Minister of Industry, Commerce & Supplies Anil Kumar Sinha.
• According to the press release, the agreement aims to facilitate rail-based freight movement between Jogbani (India) and Biratnagar (Nepal), including an expanded definition of bulk cargo.
• Through this connectivity route, goods from Indian ports in Kolkata and Visakhapatnam will be able to reach directly to the Nepal Customs Yard Cargo Station near Biratnagar in Morang district.

Jogbani-Biratnagar Corridor

• Jogbani-Biratnagar rail connectivity was built with grant assistance from the Government of India and was jointly inaugurated by the Prime Ministers of both countries on 1 June 2023.
• The release further stated, “This liberalization has been extended to key transit corridors – Kolkata-Jogbani, Kolkata-Nautanwa (Sunauli) and Visakhapatnam-Nautanwa (Sunauli), strengthening multimodal trade connectivity between the two countries and Nepal’s trade with third countries.” Both ministers also welcomed ongoing bilateral initiatives to enhance cross-border connectivity and trade.
• The release stated, “India remains Nepal’s largest trade and investment partner, accounting for a significant part of its external trade.” These new measures are expected to further strengthen economic and commercial relations between the two countries and with other countries.
• This step underlines India’s role as Nepal’s largest trade and investment partner and is part of broader efforts to enhance cross-border infrastructure, including Integrated Check Posts (ICPs) and advanced logistics systems.

India–Nepal major rail projects

• In 1937 the British built a narrow-gauge line mainly for transporting people or goods from Nepal to India. A Memorandum of Understanding has been signed between the two governments to lay an electric rail track connecting Kathmandu to Raxaul (Bihar) in India.

1. Jaynagar-Kurtha rail line:

• The first 34 km-long section of this line between Jaynagar in Bihar and Kurtha in Nepal has already begun. This line will be extended to Bijalpura and Bardibas.
• This project includes Indian grant assistance, and Konkan Railway Corporation Limited is responsible for its operation and maintenance.

2.    Raxaul-Kathmandu rail link:

• This is a proposed cross-border rail project that will connect Raxaul (India) to Kathmandu (Nepal). A Memorandum of Understanding has been signed by both countries for the feasibility study of this project.

Other connectivity projects

• Petroleum pipeline: A cross-border petroleum pipeline from Motihari (India) to Amlekhganj (Nepal) has already begun.
• Waterways development: India aims to develop inland waterways to connect Nepal to the sea (Indian Ocean).

India and Nepal

• India and Nepal share an open international border 1,751 km long, which passes through five Indian states – Uttarakhand, Uttar Pradesh, Bihar, West Bengal and Sikkim. This border connects the Himalayan terrain and the Indo-Gangetic plains and was demarcated after the Treaty of Sugauli in 1816.