India-Nepal trade ties to get a boost with new highway project

New Delhi [India], April 11 (ANI): The Ministry of Road Transport & Highways on Saturday said that Union Cabinet's approval for the construction of the 4-lane access-controlled Barabanki-Bahraich section of National Highway-927 is set to play a transformative role in strengthening trade ties between India and Nepal. "The project is expected to boost cross-border commerce, support regional livelihoods, and enhance economic cooperation between the two neighbouring countries," the press release said.
India is Nepal's largest trading partner, accounting for more than 60% of Nepal's total trade volume, reflecting the deep economic interdependence between the two nations. The Rupaidiha-Nepalguni route plays a vital role in this trade, handling the majority of exports from India to Nepal.
"The new NH-927 providing faster and more reliable connectivity, trade through this route is expected to grow significantly in the coming years," The Ministry said in a press release. The highway project is expected to significantly reduce transportation time by nearly 50%, cutting travel duration between Barabanki and Bahraich from about 150 minutes to 75 minutes, while increasing vehicle speeds from 40 kmph to 80 kmph.
This will have a direct impact on the movement of agricultural and food products, including rice, wheat, vegetables, dairy products, and livestock feed, which regularly move from Indian markets into Nepal. "Faster travel will reduce spoilage of perishable goods such as vegetables and dairy products, directly benefiting farmers and traders on both sides of the border," the press release said.
The improved road network will also complement the development of logistics facilities at Rupaidiha, where daily truck movement is projected to increase significantly, indicating strong growth potential in cross-border trade volumes. This increased movement will create opportunities for warehousing, transport services, and logistics businesses along the corridor.
The project is expected to have a significant impact on the lives of people living in border districts, bringing more business opportunities for traders, increased employment in transport and logistics, growth in hotels, eateries, and small retail outlets, and better access to healthcare, education, and markets.
"For truck drivers, farmers, and small traders, faster roads translate into higher earnings, reduced costs, and more reliable income opportunities," according to the press release. With the construction of the Barabanki-Bahraich highway, India and Nepal are set to take their trade ties to the next level, with benefits for traders, farmers, and consumers on both sides of the border. (ANI)