It is for people of Nepal to decide what is in their best interest, Vikas Swarup said.
Stressing that India has never been "prescriptive" in Nepal's constitution making process, the government today said it was an "internal issue" which the Nepalese citizens will decide.
The remarks came on a day when visiting Nepalese Prime Minister Pushpa Kamal Dahal said till the time Tharus, Madhesis and Janjatis are not taken into confidence, atmosphere cannot be created for implementation of the new Constitution.
"As far as constitution making process is concerned, it is an internal matter of Nepal. We have never been prescriptive in this regard. It is for people of Nepal to decide what is in their best interest," MEA spokesperson Vikas Swarup said.
Mr Dahal, commonly known as Prachanda, who was elected as the Prime Minister for the second time on August 3, said the top focus of the new dispensation is to create the "right atmosphere" before the implementation of the Constitution and pave way for the necessary amendments.
"We have already made two amendments," he said ahead of his talks with Prime Minister Narendra Modi tomorrow.
Prachanda, who is on a four-day goodwill visit to India, his first foreign visit after assuming power, was addressing the Nepali diaspora at the Nepalese embassy in Delhi.
"Till the time we don't take the Tharus, Madhesis and janjatis into confidence and address their legitimate demands the atmosphere cannot be created for implementation of the new Constitution.
There is a need to unite Nepal and its people despite differences in ethnicity, language, caste, class," Prachanda said.
Emphasising on the need to unite those in the Terai, hills and the plains, Prachanda said, if that does not happen, then Nepal's sovereignty will be mere words.
"If they are not united then the political crisis will loom large," he said.
The Madhesi parties had led a six month-long agitation, mainly to protest against the seven-province federal model enshrined in the Constitution. At least 50 people were killed during the protests in south Nepal last year over the issue.
India wants Nepal to take steps to address the concerns of its citizens, especially those in Terai, over its newly-adopted constitution, as it feels the more the process in this regard gets delayed, the situation will "worsen and can get messy again".
During his interaction, the Nepalese community also complained that they played a prominent role during the movement against the monarchy, but since the new democratic polity came into being they have been forgotten.