"We historically have had friendly ties and our relationship with India is very important...But, this ongoing issue at the border has brought chill in our ties, I must admit," Paswan told reporters at the Press Club of India here.
The Madhesi agitation in the Himalayan nation has caused disruption in cross-border traffic, which has badly impacted transportation of essential commodities, especially fuel.
Paswan, who is also the minister of Science and Technology, is currently on a visit to India, and after Lucknow and New Delhi, will visit Patna, as per his itinerary.
"We(India-Nepal) have a 'roti-beti ka rishta' (intimate and syncretic ties) and India is like our elder brother, and I take this opportunity to invite Indian firms to invest in Nepal and work in synergy in areas like energy and environment sector and build a 'maitripoorn' (friendly) climate," he said.
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Paswan, the Dalit face of Nepal's 601-member Constituent Assembly, praised India's role in rescue and rehabilitation work in the wake of April 2015 earthquake, but alleged that Prime Minister Narendra Modi's stressing the need for consensus in constitution making, during his second visit to Nepal "did not augur well for the bilateral ties".
Nepal's agitating Madhesi Front and the three major parties have formed a task force to find a common ground and narrow their differences over the new Constitution in a bid to end the political crisis and the shortage of essential goods due to prolonged protests.
"Notwithstanding the issues, our friendship with India must continue," he said, adding, "we appeal to India to extend help to us in our post-quake rehabilitation efforts."
The Nepali Minister said that tomorrow morning he would also ride a bicycle around the city, from the Nepalese Embassy here to pay tribute to the great Indian leaders, by garlanding their statues.