On the occasion, Indian Prime Minister Modi said the two sides will work to expedite the process to complete connectivity and infrastructure projects such as railways, highways, trans-ways and information ways.
The Indian Government has identified 15 destinations in India for development under the Ramayana Circuit theme namely Ayodhya, Nandigram, Shringverpur & Chitrakoot (Uttar Pradesh), Sitamarhi, Buxar & Darbhanga (Bihar), Chitrakoot (Madhya Pradesh), Mahendragiri (Odisha), Jagdalpur (Chattisgarh), Nashik & Nagpur (Maharashtra), Bhadrachalam (Telangana), Hampi (Karnataka) and Rameshwaram (Tamil Nadu).
The two leaders also agreed for an early meeting for the construction of the Pancheshwor Multipurpose Project jointly by India and Nepal.
Modi arrived in Janakpur on Friday morning and visited the Janki temple.
Later in the day, Modi said that "India supports a united, prosperous and strong Nepal". They inaugurated a bus service between Janakpur, considered in Hindu mythology as Goddess Sita's "maika" (parent's place), and her "sasural" (in-laws' place), Ayodhya.
He first began by commending Nepal for successfully holding elections at all three levels: federal, provincial and local levels.
PM Narendra Modi said India-Nepal ties have been unbreakable for centuries. "In fact, India is incomplete without Nepal, our history is incomplete, and similarly Lord Rama is incomplete without Nepal", he said, describing the self-esteem of Nepalis as being higher than Mt Everest.
"India stands shoulder to shoulder with the people of Nepal".
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Speaking at a civic reception by the Janakpur Sub-Metropolitan City at Barhabigha ground here, Modi briefly spoke in Nepali and Maithili.
"If one asks him (Modi), no other person is Hindu, except the BJP and RSS people, besides him and Amit Shah", he said. "For us, neighbours have always been our top priority".
Earlier, in the day Modi was conferred with the guard of honour at a ceremonial function at Nepal Army Pavilion. "There were also deliberations to improve trade ties".
Nepal's Prime Minister Khadga Prasad Oli flew to Janakpur to welcome Modi.
In response to a question, Gokhale said there was no discussion on the issue of the South Asian Association for Regional Cooperation (SAARC). Hoardings were placed in the temples, hailing Indo-Nepal friendship. He added the Janakpur-Ayodhya circuit would strengthen connectivity between the two nations apart from promoting religious tourism. The visits are seen as an attempt to mend the relations between the two countries.
"We are connected with Nepal through rail, water, transmission line, petroleum pipeline", Modi told the media. "It's the same unique relationship between these two countries that people from Rameshwor come to Nepal to pay obeisance to Pashpathinath and devotees from Lumbini reach as far as Bodhagaya on a pilgrimage", he said.
On the occasion, Modi also announced a gift of India-made indigenous radiotherapy machine for Bhaktapur-based cancer hospital. This is Modi's third trip to Nepal in a span of four years.