New Delhi supports broadest possible political consensus in Nepal for the framing of a new constitution, which has been hit by political feuds between rival parties and factions in the political establishment.
Issues relating to trade and investment, water resources, border management, hydroelectric projects and developmental cooperation between the two countries will also figure in the discussions.
The Indian side is expected to stress the need for a new extradition treaty that could be useful in arresting criminals who cross the border and in curbing other cross-border criminal activities.
The visit will provide 'a useful opportunity to both sides to discuss issues of mutual interest and ways to further strengthen and expand the close bilateral ties that exist between India and Nepal', India's external affairs ministry said in a statement to mark Nepal's visit.
Nepal took over office May 25 after his predecessor, Maoist chief Pushpa Kamal Dahal Prachanda, resigned following a controversy over the dismissal of the Nepal Army chief.
The new prime minister's visit was preceded by that of Foreign Minister Sujata Koirala last week.