In such an attempt to build ties, External Affaris Minister Sushma Swaraj visited Nepal just before Mr Oli took oath to the office to congratulate him for the historic victory.
Later, Oli held bilateral talks with PM Narendra Modi and issued a joint statement. "I have assured PM Oli that this will continue in the future as per Nepal's priorities", he added.
India's indifferent response to the blockade by the United Democratic Madhesi Front had triggered speculation about New Delhi's tacit support for the protest against Nepal's Constitution for not factoring in proportional representation to the Madhesis who have Indian ancestry. Any treaty any agreement, everything starts with friendship. India abiding interest is in the stability and economic prosperity of Nepal.
But Foreign Secretary Gokhale said the circumstances in 2016 and current times were different, adding that the government of Nepal was elected on the basis of the Constitution. Geographically, we are in [the] centre between two countries.
India and Nepal on Saturday sought to turn the page on an acrimonious phase in bilateral ties over the Himalayan nation's 2015 constitution with new "game-changing" initiatives in connectivity, trade and agriculture between the two neighbours.
New connectivity between India and Nepal through Inland Waterways.
"We have agreed to expedite implementation of all connectivity projects. we have agreed on a new railway line to link Kathmandu with India", he said.
Prime Minister Oli also stated that after the landmark political transformation, his government has given priority to economic transformation with the motto "Samriddha Nepal Sukhi Nepali".
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Earlier on Saturday, during the joint press meet, the Prime Ministers of India and Nepal on Saturday touted strong bilateral relationship.
"We have strong relations when it comes to the aspect of security and are committed towards stopping misuse of our open borders", said Modi, with Oli by his side.
India's ambassador to Nepal, Manjeev Singh Puri, underlined the importance of the proposed rail and river link, saying it would remove the feeling among Nepalese about being land-locked. We have developed our friendship according to time with a goal to eradicate poverty, improve life standards.
The Nepalese prime minister said he also shared with Modi Nepal's concerns about the alarming scale of trade deficit and stressed on the need of implementing measures to expand Nepal's export. "Neighbourhood realities make peaceful coexistence, based on the principles of equality, justice, mutual respect and benefits a necessity for shared destiny", Oli said in the statement in presence of Modi.
Welcoming Mr Oli to India, the President said he was happy to note that this was his first visit overseas after his appointment as the Prime Minister of Nepal.
Boosting their ties further, India also agreed to conduct a pilot project on organic farming and soil health monitoring in Nepal to help the natural resource-rich neighbour in developing agriculture and allied sectors.
Viewed as an important visit, Oli has flew in a 54-member high-level delegation to India, seeking more investment from India's public as well as private sector.