Nepal is a landlocked country that relies heavily on Indian ports and transit routes for third-country trade. Earlier, containers had to be unloaded and reloaded at the border, adding time and cost. The Jogbani-Biratnagar broad-gauge link now allows containerised cargo to move directly by rail from Kolkata to Biratnagar, cutting transit time and logistics costs. The India-Nepal Treaty of Transit governs Nepal's access to the sea through India.

Direct rail freight deepens India-Nepal economic integration, lowers Nepal's trade costs and strengthens India's role as Nepal's primary transit partner — an important dimension of India's 'Neighbourhood First' policy. Better connectivity also supports people-to-people and commercial ties between the two countries.