"Misunderstandings" between India and Nepal "do not" persist anymore, Oli said, terming it as the "most important" outcome of his first visit to India after assuming office in last October.
He made the remarks while delivering the 21st Sapru House Lecture of the Indian Council of World Affairs here which was presided over by External Affairs Minister Sushma Swaraj and attended by top members of the visiting Nepalese delegation.
"Having exchanged views with them I am convinced that whatever misundertsanding was there does not perisist anymore. This in my view is the most important outcome of my visit," Oli said.
Oli, who is the first Prime Minister under the newly adopted Constitution of Nepal, said "intermittent" issues between two countries and governments "should not lead us" to actions that are unwarranted and impact people's daily lives adversely.
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Touching upon the country's relations with its northern neighbour China, Oli said there was no "basis" to the perception that Nepal "uses this or that card".
"There is no question about aligning with the one or the other. We cannot do it and it is not a viable policy option either. As neighbours we continue to have good relations with both and one is not comparable to the other," he said.
In her speech, Swaraj praised the Nepalese political leadership for showing "maturity" and bringing the Constitution to life despite adverse circumstances following the devastating earthquake that ravaged parts of the Himalayan country and led to massive loss of life and property.
"Occasional differences may appear in any society. It is
also true between us but we must address them in a way that does not undermine the foundations of our relations.
"We must ensure that open border are not misused by unscrupulous elements. We also need to maintain the sanctity of no man's land so that the true spirit of open border remains alive," Oli said.
"India is our closest and the most important partner in development and prosperity. Our relations are extensive, deep and multidimensional. There are very few countries in the world whose past and future are so closely intertwined," he said.
Deputy Prime Minister of Nepal Kamal Thapa, in his brief address, said that the Constitution, in its present form, has adequate flexibility and competence to address the concerns of the Madhesi community.
He said anyone who believes in the "supremacy" of people, will not "take up arms" over their concerns relating to the Constitution. It is natural for us to look forward to inspiration and some patting on the back, he said.