Adopting a "test and verify" approach with the new leadership in Nepal, India is "relatively satisfied" with the steps taken by the government there to assuage the concerns of the Indian-origin Madhesi community by including two key amendments to the Constitution.
It now wants the political establishment in the Himalayan nation to show "wisdom and maturity" to find a solution to pending issues through dialogue.
The two amendments were incorporated after months of agitation by Indian-origin Madhesis of the Terai region demanding greater protection of their rights under the new Constitution. The Madhesis had enforced a nearly five-month blockade of the Indo-Nepal border, crippling essential supplies, before calling it off earlier this month.
While Kathmandu accused India of imposing a "blockade" in a bid to pressurise it into accepting the demands of Madhesis, the government here maintained it was "natural to externalise the internal problems."
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There is also a feeling here that Nepal's "China card" and its "perceived impact" on Indo-Nepal ties has not worked as was evident from the fact that Oli was making his first official visit after assuming charge to India. Oli will be here on a State visit for six days during which he will hold extensive talks with Modi on a host of key bilateral and regional issues on February 20.
During Oli's visit, the two sides are also expected to discuss Indian aid for reconstruction after the devastating earthquake in Nepal. The flow of the aid was "paused" in the past few months due to absence of a law to regulate it.
It is understood that India would also like to "forget" Nepal's "lack of inclusion and discriminatory" approach while adopting the new Constitution and move forward to strengthen the age-old ties.