India-Nepal Rail Update: In order to enhance trade ties between India and Nepal, the Indian Railways has taken a significant step. Recently, a pioneering 40-wagon container freight train ran directly from Kolkata Port to Biratnagar, Nepal, for the first time. By operating a direct freight train from India, the need for loading and unloading goods at the border has been eliminated. This move is expected to cut freight expenses, lower product costs, and expedite delivery, ultimately boosting trade between the two nations.
India stands as Nepal’s primary trading partner, offering transit facilities for Nepal’s commerce with other countries, thereby facilitating its international trade. As per the Indian Embassy in Kathmandu, around two-thirds of Nepal’s total foreign trade is conducted with India. In the fiscal year 2025-26, bilateral trade between the two countries amounted to Rs 84,500 crore ($9388.98 million). India exported goods valued at approximately Rs 67,024.08 crore ($7447.12 million) to Nepal, while Nepal exported goods worth about Rs 17,476.83 crore ($1,941.87 million) to India.
Previously, the main challenge in shipping goods from India to Nepal was at the border, where goods had to be transferred between train containers. This process involved unloading and reloading goods onto Nepalese trains or other modes of transport like trucks, resulting in time wastage and additional costs. Now, goods loaded at Kolkata Port will be directly transported to Nepal’s Biratnagar Customs Yard, saving time and money. The reduced transportation and logistics expenses will benefit importers and exporters by ensuring that goods reach consumers at competitive prices.
Benefits for both countries:
– The newly established freight train journeyed to Nepal through the Jogbani (India) and Biratnagar (Nepal) broad-gauge rail link, inaugurated in June 2023 under the India-Nepal Rail Transit Protocol. This rail service will offer significant advantages to both nations:
– Relief for businesses: Indian exporters and Nepalese importers will receive timely deliveries of raw materials and finished products. Additionally, reduced logistics costs will make Indian goods more affordable in the Nepalese market, thus boosting demand.
– Paving the way for the future: If the trial run of this freight train proves successful, other major Indian ports and industrial cities could potentially be directly linked to Nepal’s rail network in the future.
– Environmental advantages: Transporting goods by train is not only more cost-effective than using trucks for road transport but also contributes to reducing environmental pollution. This shift will decrease truck traffic, save fuel, and mitigate pollution.