Kolkata Biratnagar Rail Cargo To Ease Nepal India Trade

The ministry explained that under the treaty goods imported from third countries may be transported through Indian territory to Nepal's border and that the new route will allow such consignments to reach Biratnagar Integrated Check Post (ICP) and Nautanwa. It indicated that the rail link is expected to reduce trade costs, provide safer and more reliable transportation and shorten import times. The ministry said delay charges, container detention charges and additional road transportation burdens borne by Nepali importers are likely to be reduced, which should lower overall trade transit costs and bolster competitiveness of Nepali industrialists.

The ministry recalled that on November four last year India's Central Board of Indirect Taxes and Customs (CBIC) amended the Electronic Cargo Tracking System regulations to expand rail cargo movement from the ports of Kolkata, Haldia and Visakhapatnam. It added that Nepal approved a letter of exchange amending the transit treaty protocol in 2023 to allow import of all types of goods, both containerised and bulk, by rail to the Biratnagar ICP and to Nautanwa. Previously, only four commodities could be transported by rail from third countries and movements had been restricted to Birgunj.

The ministry cited Department of Customs data showing Nepal exported goods worth Rs 224.68 billion (bn) to India in the previous fiscal year while imports from India totalled Rs 1.07 trillion (tn), creating a trade deficit of Rs 846.51 bn. It noted that Kolkata remains Nepal's nearest seaport and that India continues to provide transit facilities for almost all of Nepal's third-country trade. The ministry emphasised that Nepal's overseas trade is primarily routed through the ports of Kolkata, Haldia and Visakhapatnam and that trade with Bhutan and Bangladesh also passes through Indian territory.