The freight train, which carried canola oil in 40 tank wagons, arrived at Biratnagar last week, marking the start of a new rail-based trade link between the two countries.
The Ministry of Railways said the new freight arrangement is expected to reduce transit time, lower logistics costs and minimise cargo handling, while improving the efficiency, reliability and competitiveness of India-Nepal trade.
The development builds on the broad-gauge rail link between Jogbani in India and Biratnagar in Nepal, which was inaugurated in June 2023.
“Following the signing of the revised Letter of Exchange (LoE) in Nov 2025, direct commercial rail movement to Biratnagar has now become operational, opening new opportunities for bilateral trade and economic cooperation,” the ministry said in a statement.
The direct freight service is expected to benefit importers and exporters by providing a faster and more economical transport option. It will also reduce the need for multiple cargo handling points, helping streamline supply chains between the two countries.
The move is seen as a significant step towards strengthening India-Nepal economic ties by expanding rail-based trade connectivity and offering an alternative to traditional road-based freight movement.