New Delhi on Monday welcomed the Nepal government's decision to address and resolve demands regarding the Nepali constitution by Madhesi parties that have been agitating for months now. An emergency cabinet meeting in Kathmandu on Sunday night saw the Nepal government agree to proportional representation in state organs, delineation of constituencies on the basis of population and a mechanism to resolve provincial boundary disputes.

"Government of India welcomes these developments as positive steps that help create the basis for a resolution of the current impasse in Nepal," said the Indian government in a statement. It added that India had been concerned about the unrest stemming from internal differences in Nepal, and said that New Delhi is confident a "return to normalcy in Nepal would create a more secure and predictable climate for unimpeded commerce between our two countries."The first version of Nepal's consitution was seen as being unfair to the Madhesis, who constitute 52% of the Nepali people but are closer ethnically to the Indians across the border. India supported the agitation of Madhesi political parties, particularly along the border, resulting in a de facto blockade of Indian goods moving into Nepal, causing fuel and food shortages. New Delhi's statement clearly references this and suggests that the blockade is likely to ease once the new provisions are added to the constitution.