India and Nepal have taken a major step toward strengthening regional connectivity by signing a Letter of Exchange (LoE) on November 13, 2025, amending the Protocol to the India–Nepal Treaty of Transit. This move expands rail-based freight movement, especially through the Jogbani–Biratnagar corridor, enabling smoother trade between Nepal, India, and third countries.
The agreement now permits direct movement of containerized and bulk cargo via the Jogbani–Biratnagar rail link—an infrastructure project built with Indian grant assistance and inaugurated in June 2023. The LoE also broadens multimodal transit access through major Indian ports such as Kolkata and Visakhapatnam, enhancing Nepal’s maritime trade options.
For Nepal, the new route promises faster, cheaper logistics and better access to global markets. For India, it reinforces its “Neighbourhood First” policy and strengthens economic ties with Nepal while improving cross-border multimodal connectivity.
The treaty upgrade reflects the long-standing trade partnership between the two nations, with India being Nepal’s largest trading and investment partner. The improved corridors—Kolkata–Jogbani–Biratnagar, Kolkata–Nautanwa, and Visakhapatnam–Nautanwa—will further streamline Nepal’s sea-access channels and support regional economic integration.
