India expands digital cargo tracking for Nepal-bound shipments

New Delhi: The government has expanded the electronic cargo tracking system (ECTS) for Nepal-bound shipments, allowing transit cargo movement through additional Indian ports and new rail-road routes.

The decision, announced on Tuesday, simplifies procedures, reduces transit time, eases pressure on key ports, and enhances the security of cargo movement between the two countries, while also supporting India’s growing export volumes to Nepal.

The GPS-enabled system allows real-time tracking of containers, replacing the earlier manual sealing and paper-based documentation process.

“The system enhances predictability, reduces delays and ensures secure, tamper-proof cargo movement. Extending it to more routes will make cross-border logistics faster and more transparent,” said Abhash Kumar, trade economist and assistant professor, economics, Delhi University.

The change also aligns with India’s obligations under the India-Nepal Transit Treaty, under which India provides Nepal with multiple trade routes through its territory.

By expanding the ECTS coverage, India seeks to facilitate smoother transit for Nepal’s imports while improving logistics efficiency for Indian exporters. The initiative also supports India’s commitment under the WTO’s trade facilitation agreement to use technology for streamlining customs procedures.

The Transhipment of Cargo to Nepal under Electronic Cargo Tracking System (Amendment) Regulations, 2025, issued by the finance ministry, will apply to cargo transhipped from the ports of Kolkata, Haldia, and Visakhapatnam, as per the government notification issued by the Central Board of Indirect Taxes and Customs (CBIC).

Shipments from these ports can move to Birgunj in Nepal by rail, to Batnaha in India by rail and onward to Biratnagar by road, to Biratnagar in Nepal directly by rail, and to the Indian Customs Yard at Jogbani by rail followed by road transport to Biratnagar, it said.

“With the inclusion of Visakhapatnam port and additional transit corridors, exporters in southern and eastern India will now have alternative gateways to reach Nepal, reducing dependence on the Kolkata-Birgunj route which often faces congestion,” Abhash Kumar said.

The move gains significance as India’s exports to Nepal recorded one of the steepest declines among its major trading partners in September, with youth-led protests and a political transition in the Himalayan nation disrupting cross-border trade. Shipments to Nepal fell 16.6% year-on-year to $516.62 million in September.

India is a major trading partner for Nepal. In FY25, it exported goods worth $7.32 billion to Kathmandu, while imports into India totalled $1.2 billion, resulting in a substantial trade surplus for India. In FY24, India's exports to the country were worth $7 billion, while imports totaled $0.831 billion.

Key exports from India to Nepal include petroleum products, vehicles, machinery, electrical equipment and food items.

The ECTS was first introduced in 2019 to digitally monitor the movement of Nepal-bound cargo under India’s international transit arrangements. It was last amended in July 2023.