Interacting with a group of select media persons at his office here, Indian Ambassador to Nepal Ranjit Rae said India wants to see peace and stability in Nepal.
Denying reports that India has imposed any "embargo" on the supplies to Nepal, Rae said the movement of goods has significantly reduced due to the security problems in the border areas amid ongoing protests launched by the Madhesi groups opposing the promulgation of the new Constitution.
Rae, however, hoped that the issue would be resolve soon as the major political parties and the agitating groups are engaged in informal talks for a couple of days.
"We are in touch with all political parties and all political forces, and we are urging them to resolve these issues through dialogue because these are political issues, it has to be done through negotiations.
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"And we are happy that the process of negotiations is going forward and I am confident that they will yield good result," he said.
"India's only concern is that the constitution should be widely acceptable within Nepal and nobody should feel left out," he said.
"Whipping up of anti-India sentiment, burning of effigies and the Indian flag is not a good symptom and such things cannot solve the problem," he added.
"Instead there should be focus towards restoration of peace and normalcy in the Terai," Rae said.
Media reports had said protesters marched in Kathmandu on Monday carrying an effigy of Prime Minister Narendra Modi, accusing India of imposing an economic blockade and meddling in the country's internal affairs.
"Our consistent message to Nepal is please resolve these issues through dialogue and negotiations. The issue can only be resolved in an atmosphere free from violence and in a spirit of compromise and flexibility," he said.