The first direct India-Nepal freight train [Times of India]
The first direct India-Nepal freight train [Times of India]

India and Nepal have launched their first direct freight train service linking the two countries.

According to local media including the Times of India on Wednesday local time, a 40-wagon container train loaded with canola oil departed from Kolkata port in eastern India last week and arrived at the Biratnagar customs yard in eastern Nepal.

India's Ministry of Railways said in a statement Tuesday that the direct freight service between the two countries would "reduce cargo transit time and costs while improving the efficiency, reliability and competitiveness of cross-border trade."

The ministry added that the inaugural run "opens new opportunities to expand trade and economic cooperation between the two countries."

The Times of India said the direct freight service marks a turning point for the bilateral rail connectivity project.

To enable the direct service, the two countries completed an 18.6-kilometer broad-gauge railway in June 2023 connecting Jogbani, an eastern Indian city bordering Nepal, with Biratnagar, an industrial hub in eastern Nepal.

They then signed a revised memorandum of exchange on rail operations last November.

Under the arrangement, freight trains can now travel directly from Kolkata port to Nepal without stopping at the border to transfer cargo. The streamlined process is expected to cut logistics handling time and transportation costs by 15 to 20 percent.

Bilateral trade between India and Nepal reached approximately $9.39 billion in the 2025–2026 fiscal year ending in March, accounting for more than 60 percent of Nepal's total trade volume.

Nepal exports palm oil, soybean oil and jute products to India, while India exports steel products, automobiles and parts, and machinery to Nepal.

Meanwhile, India and China are competing to expand their influence over Nepal, which sits along the Himalayan range. As the two powers vie for dominance in infrastructure connectivity — including roads and railways — and cross-border trade, the new direct freight service is seen as part of India's broader strategy to strengthen its foothold in Nepal.


mokiya@heraldcorp.com