Nepal's stability is linked to India's security, Prime Minister Narendra Modi said on Saturday at a joint press conference with his Nepalese counterpart K.P. Sharma Oli.
"It is clear that the stability of Nepal is linked to India's security. Prime Minister Oli and I agree that we need to face together the rising extremism and terrorism in the two countries," Modi said.
"We will not allow terrorists and criminals misuse the open borders between the two countries. Security agencies of both countries will collaborate closely in this context," the Indian prime minister said in his statement.
He also said that peace and stability in Nepal is in "mutual benefit" of the two countries.
"I and whole India is in favour of economic development of Nepal.... I am confident under your able leadership, India-Nepal relations will further strengthen and attain new heights," Modi told Oli.
Modi also mentioned that the two countries have decided to open two more transit points along the border which he said will increase connectivity and push regional development.
Modi and Oli together tele-inaugurated a power transmission line between Muzaffarpur in Bihar and Dhalkebar in Nepal.
"We are working on hydro projects with combined capacity of 7,000 mw and their quick and successful completion can be a gateway to Nepal's economic prosperity," Modi said.
Oli, who arrived here on Friday, is the first Nepalese prime minister to pay a bilateral visit to India since 2011 when Baburam Bhattarai had travelled to New Delhi.