Revised Transit Pact Lets All Cargo Flow to Nepal via Indian Ports

Nepal and India have moved to significantly ease cross-border trade, opening all routes for every category of cargo to reach Bhairahawa via Kolkata, Visakhapatnam, Biratnagar (Jogbani) and Nautanwa (Sunauli).

The breakthrough follows a key amendment to the Protocol of the Transit Treaty between the two neighbours.

Officials in Kathmandu say the revised protocol will sharply reduce Nepal’s transit time and logistics costs, long-standing bottlenecks for the landlocked nation’s global trade

“We expect major improvements in trade facilitation,” Jitendra Basnet, spokesperson for Nepal’s Ministry of Industry, Commerce and Supplies, said.

Until now, only four types of bulk goods were allowed to move by rail through the designated checkpoints.

The new arrangement opens both rail and road transport for all cargo categories along the same routes.

This is a shift Nepali officials describe as both practical and transformative.

The formal exchange of the amended protocol took place in New Delhi, where Nepal’s Minister for Supplies, Anil Kumar Sinha, met India’s Commerce and Industry Minister, Piyush Goyal, ahead of Sinha’s onward travel to Visakhapatnam port.

According to Nepal’s ministry, the two sides held wide-ranging talks on boosting bilateral trade, simplifying customs certification, expanding cross-border infrastructure and promoting fresh investment.

Minister Sinha stressed the need to streamline approval procedures to match the growing volume and complexity of trade.

Sinha also commended India’s “Neighbourhood First” policy, saying deeper coordination was essential to unlock the full potential of transit and trade cooperation.

Minister Goyal, for his part, reaffirmed Nepal’s status as a priority partner for India and instructed officials from both sides to expedite decisions on pending technical issues.

The meeting included Nepal’s Ambassador to India, Dr. Shankar Sharma, along with senior officials from both governments.

If effectively implemented, analysts say the widened access could reshape Nepal’s trade logistics, offering exporters and importers faster, cheaper and more reliable routes through India’s major ports.