Indian Prime Minister Narendra Modi met with Nepalese President Ram Baran Yadav and Prime Minister Sushil Koirala in Katmandu on Monday, rounding out a two-day visit that focused on setting aside the neglect and mistrust that have clouded ties between the countries.
Modi used the first visit by an Indian leader to Nepal in 17 years to stress India's interest in boosting its neighbor's development.
On Sunday, he announced a $1 billion line of credit during an address to Nepalese lawmakers.
He added that India wants to help develop highways, information networks and trans ways, or transmission lines, in Nepal to help the country integrate with the rest of the world, in addition to hydro power and tourism projects.
Landlocked Nepal is dependent on India for its energy supplies and nearly all its trade.
Nepal’s fractious political parties have been struggling to write a constitution after the country abolished its monarchy in 2008.
The Indian leader underlined the advantages of completing the process, but stressed that New Delhi would not interfere.
Modi also met Nepal's main opposition politician, Pushpa Kamal Dahal, the leader of the Maoist Communist Party of Nepal, before heading back to India.
Anjana Pasricha contributed to this report from New Delhi.