The statement from Nepal's home ministry came after some students burnt effigies of PM Modi during protests over the death of a Nepalese youth near the border with India in July.
CSEP think tank researcher looked at India's icreasing trade and passenger movement with Nepal, Pakistan, and Bangladesh to find why Delhi is pushing for border infrastructure development.
Modi also congratulated his Nepalese counterpart Sher Bahadur Deuba and said they will work together to better India-Nepal cooperation, including the fight against Covid pandemic.
In a BBC interview, Nepal PM K P Sharma Oli further said that the two countries share both love and problems and the neighbours should move forward looking at the future.
Nepal witnessed fresh political turmoil last week after President Bidya Devi Bhandari dissolved Parliament following PM K P Sharma Oli's unsuccessful attempts to obtain majority govt.
During the festive season, nearly 2,000 containers with clothes, shoes, cosmetics, electronics and industrial raw materials were stopped from entering Nepal.
The treaty to strengthen and develop India-Nepal ties has been in question in Kathmandu over the years. A call to revise it was raised again earlier this month.
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