Nepal attaches "great importance" to its relations with India which are based on mutual respect, goodwill, understanding and cooperation, Prime Minister Madhav Kumar Nepal has said.
"We have very extensive, close and cordial relations with India at people's level as well," the Prime Minister said, addressing a function organised by the Council of World Affairs, Nepal.
He said the Himalayan country attached great importance to its relations with its immediate neighbours India and China.
Nepal said the ties with India are based on mutual respect, goodwill, understanding and cooperation, "Our relations with our northern neighbour China have been equally cooperative, close and cordial," he pointed out.
"Friendship with all and enmity with none, is the fundamental basis of our relationships."
The Premier said the foreign policy of Nepal is based on the principles of the UN Charter, panchsheel, non-alignment, international cooperation and peace.
"The main objective of our foreign policy is to preserve our national sovereignty, territorial integrity and political independence," he said.