In its statement here at the second Universal Periodic Review of Nepal, India also urged the Himalayan nation to investigate and take credible measures to prevent recurrence of "incidents of violence, extra-judicial killings and ethnic discrimination in the country".
"We note the concerns expressed by UN human rights bodies, UN Country Team and Nepal's own Human Rights Commission over continuing incidents of violence, extra-judicial killings and ethnic discrimination in the country," India said.
It stated that as a close and friendly neighbour, it has consistently appealed to Nepal to address all challenges in a spirit of dialogue and reconciliation.
Making recommendations to the Nepalese government, India said it should, "consolidate the Constitution building and democratisation process by accommodating all sections of Nepal to enable broad-based ownership and participation."
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India also recommended that Nepal should ensure the independence and financial autonomy of the National Human Rights Commission and called for setting up an independent commission for children and women.
In the statement, India also made it clear that the obstruction in the supply of essential goods to Nepal was from the Nepalese side caused by Nepalese protesters.
India's statement assumes significance due to the ongoing protests in Nepal by the Madhesis over the Constitution and the strain in bilateral ties after the killing of an Indian in police firing.
The Nepalese delegation was led by Deputy Prime Minister and Minister of Foreign Affairs Kamal Thapa.