"Terrorism today poses the most serious threat to our peace and security. The International community will need to work together. We will need to foster tolerance and understanding in all societies and eradicate the scourge of terrorism," said President Mukherjee, who is in Kathmandu on a three-day visit -- the first by an Indian President in 18 years.
In his speech at the State Banquet given in his honour by Nepal President Bidya Devi Bhandari, President Mukherjee said the common challenges that we face in the 21st century will necessitate an environment of peace and security in our region and beyond.
President Mukherjee said India remained committed to promoting regional and sub-regional cooperation.
"India was honoured to welcome Prime Minister Prachanda and other leaders from the BIMSTEC countries to the BRICS-BIMSTEC leaders' outreach Summit in Goa to discuss ways to enhance regional cooperation," he said.
Nepal as SAARC chair had condemned attack in Uri wherein 19 Indian soldiers were killed by terrorists from Pakistan. While cancelling the SAARC Summit scheduled in Islamabad, Nepal had issued a stern statement condemning all forms of terror.
The views were echoed by leaders of Nepal on Wednesday when Foreign Minister Prakash Sharan Mahat said no country should allows its territory against another country and condemned all forms of terrorism.
Former Prime Minister Sher Bahadur Deuba said Nepal was aware of India's security concerns and condemned terrorism.
"The People of Nepal are engaged in historic undertaking of consolidating the gains of democracy, achieving progress, and ensuring that benefits reach each and every citizen," President Mukherjee said.
He commended the commitment of Nepalese people in their quest for peace, stability, progress and all round development. "They seek to accomplish a Constitution that responds to the needs of their diverse social fabric. This is not an easy task," President Mukherjee said.
He said destinies of two countries are inter-linked with vital stakes in each others' well being and prosperity.
"The rapid economic transformation that is taking place in India present unprecedented opportunities for the people of Nepal. We invite them to be a part of India's growth story."
"Together, we can and we must achieve the full potential of our ever expanding mutually beneficial cooperation," he said.
He said both sides have prioritised some areas of common interest which includes trade, mutual investments, defence and security, agriculture, hydro-power, infrastructure development, and connectivity projects.
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