India–Nepal Amend Treaty of Transit to Boost Rail-Based Freight Movement

IN NEWS — India–Nepal Amend Treaty of Transit to Boost Rail-Based Freight Movement

ANALYSIS

1. What has been done?

• India and Nepal have amended the Treaty of Transit to facilitate rail-based freight movement between Jogbani (India) and Biratnagar (Nepal).
• The amendment expands the definition of cargo to include bulk cargo, enabling smoother cross-border logistics.

2. What was signed/exchanged?

• Commerce and Industry Minister Piyush Goyal and Nepal’s Minister for Industry, Commerce and Supplies Anil Kumar Sinha exchanged letters amending the protocol to the Treaty of Transit on 13 November 2025 in New Delhi.

3. Key features of the amendment

• Rail-based freight movement liberalised between Jogbani–Biratnagar.
• The expanded definition covers bulk cargo, improving trade efficiency.
• Liberalisation extends to major transit corridors used by Nepal:
  • Kolkata–Jogbani
  • Kolkata–Nautanwa (Sunauli)
  • Visakhapatnam–Nautanwa (Sunauli)
• This strengthens multimodal trade connectivity linking ports, railheads, and border crossings.

4. Benefits for bilateral and third-country trade

• Enhances Nepal’s access to ports and global markets.
• Improves logistics competitiveness through:
  • Lower transit time
  • Greater cargo diversification
  • Reduced transaction costs
• Supports Nepal’s external trade as India is its largest trade and investment partner.

5. Broader strategic significance

• Reinforces India–Nepal economic cooperation under:
  • Neighbourhood First Policy
  • Regional connectivity goals
• Builds on other cross-border initiatives such as:
  • Integrated Check Posts
  • Cross-border petroleum pipeline
  • Rail connectivity projects (e.g., Jayanagar–Kurtha)
• Strengthened connectivity helps stabilize supply chains and supports Nepal’s economic resilience.

STATIC PART — INDIA–NEPAL TREATY OF TRANSIT

• Signed: 1960, periodically revised.
• Purpose: Enables Nepal, a landlocked nation, to access Indian ports and transit routes for third-country trade.
• Major transit ports: Kolkata–Haldia (traditional), Visakhapatnam (added later).
• Framework covers:
  • Port access
  • Transit routes
  • Customs procedures
  • Movement of goods by road/rail

Updated – 14 November 2025 ; 7:20 AM| News Source: The Hindu