After the formation of the UML-led government, the then Prime Minister Manmohan Adhikari paid a five-day visit to India from Chaitra 27, 2051. During the visit, a formal and informal agenda was presented to India. The agendas included the 1950 Treaty of Peace and Friendship with Nepal, use of water resources, trade, the Tanakpur Treaty, and border disputes.

Adhikari's visit to India came at a time when there was a lot of discussion in the country about what the UML, which had been making friendly statements towards India while in opposition, would do after coming to power.

Prime Minister Adhikari had paid an official visit to India five months after the formation of the government. During the visit, Indian Prime Minister PV Narasimha Rao and Nepalese Prime Minister Manmohan Adhikari held group and 'one-to-one' talks. On the third day of the visit, Nepal's Foreign Secretary Kedar Bhakta Shrestha and Indian Foreign Secretary Salman Haider issued a joint statement on Chaitra 29, 2051, as agreed between the prime ministers of both countries.

On the day Prime Minister Adhikari left for Calcutta after his visit to New Delhi, the statement issued by both countries mentioned that discussions had been held on the review of the 1950 Treaty of Peace and Friendship. 'The leaders of both countries have agreed to continue discussions on the 1950 Treaty.' Discussions between the two countries on all other relevant issues of bilateral interest will continue at the appropriate level,' the statement said.

In the field of trade and transit, India will consider providing additional ports of Kandla and Bombay, providing Indian markets for goods produced in Nepal, and the intergovernmental mechanism of both countries for trade and commerce will review it, the joint statement said. At that time, it was analyzed that Prime Minister Adhikari had succeeded in getting the Indian side to review the 1950 treaty.

However, there was no concrete achievement on issues such as the use of water resources, the Tanakpur Treaty, and trade. Nepali Congress MP Dhundiraj Shastri, who was part of the visiting team, said that Prime Minister Adhikari had made it clear that the 1950 Treaty of Peace and Friendship with India should be reviewed. Shastri had responded that it would be difficult to review the treaty if it was used as a political slogan in the future.

Adhikari also held talks with Jyoti Basu, the leader of the Communist Party of India (Marxist), who had reached Calcutta during his visit. Adhikari had informed that during the talks with Basu, discussions were held on resolving the Bhutanese refugee problem. The joint statement did not mention the Bhutanese refugees.

At that time, the refugees living in Nepal were a problem. There was no possibility of solving the problem without Indian cooperation. Adhikari, while addressing the eastern region meeting of the Confederation of Indian Industry (CII), had urged people not to be confused about the open economy adopted by the UML government. Adhikari had urged Indian entrepreneurs to invest in Nepal, saying that the UML government had created confusion.