NEW DELHI: The leaders of India and Nepal pledged Thursday to enhance cooperation on energy and economic projects, as New Delhi seeks to counter Beijing’s increasing influence in Kathmandu.

Nepal’s Prime Minister Pushpa Kamal Dahal arrived in India on Wednesday, on his first foreign trip since returning to power last year.

The Himalayan nation has traditionally done a balancing act between New Delhi and Beijing, but analysts believe Indian influence has dwindled as China’s investments have grown significantly.

“We will continue to strive to take our relationship to Himalayan heights,” Indian Prime Minister Narendra Modi said at a ceremony with his counterpart.

During their talks, they agreed to extend a petroleum pipeline between the two countries, and reviewed progress on a major hydroelectricity project and a power transmission line running from Nepal to Bangladesh via India.

They also launched a cargo service between the two countries on a rail route that was restored last year.

Dahal hailed his nation’s economic partnership with India.

“Nepal’s hydropower can not only contribute to our... economic and energy security, but also serve as an important factor to realise our climate ambition,” he said.