India-Nepal trade gets boost with first direct freight train to Biratnagar

The first direct commercial freight train from Kolkata arrived in Biratnagar, Nepal, on July 20. This marks the operationalisation of the amended India-Nepal rail transit framework, a major milestone for bilateral trade and connectivity.

In a major milestone for India-Nepal trade and connectivity, the first direct commercial freight train carrying a consignment of canola grains arrived at the Nepal Customs Yard (NCY) in Biratnagar from Kolkata Port on July 20, marking the operationalisation of the amended India-Nepal rail transit framework.

The 40-wagon rake reached Biratnagar via the Indian Customs Yard at Jogbani, becoming the first commercial cargo train to use the cross-border rail corridor after the signing of the Letter of Exchange (LoE), amending the Protocol to the India-Nepal Treaty of Transit, in November 2025.

Strengthening Cross-Border Connectivity

The development is seen as a significant step towards strengthening bilateral economic connectivity and improving cross-border rail logistics between the two neighbours. The Jogbani (India)-Biratnagar (Nepal) broad-gauge cross-border rail link was jointly inaugurated by Prime Minister Narendra Modi and then Nepal Prime Minister Pushpa Kamal Dahal 'Prachanda' on June 1, 2023.

Amended Transit Protocol Enables Operations

Built with grant assistance from the Government of India, the project was conceived to facilitate seamless freight movement between the two countries. However, commercial operations required amendments to the existing Protocol under the India-Nepal Treaty of Transit. Following sustained diplomatic engagement, both sides signed the Letter of Exchange on November 13, 2025, in the presence of Union Commerce and Industry Minister Piyush Goyal and Nepal's then Minister for Industry, Commerce and Supplies, Anil Kumar Sinha.

Boosting Trade and Reducing Logistics Costs

The amended protocol permits direct rail movement of both containerised and bulk cargo from Kolkata and Visakhapatnam ports to designated rail points in Nepal, including the Nepal Customs Yard at Biratnagar. Officials said the first commercial freight movement marks the practical implementation of the amended transit framework and unlocks the full potential of the cross-border rail link. The direct rail service is expected to reduce logistics costs, improve transit efficiency for Nepal, strengthen its access to Indian ports and further boost bilateral trade while reinforcing India's role as Nepal's principal transit partner. (ANI)

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