"By promulgation of the Constitution through the Constituent Assembly we have conveyed the message to the world that Nepalese people are capable of making decisions by themselves," he said.
"We cannot bow down before anyone's pressure or persuasion. It is a matter of our conscience and self-respect. This time Nepalese people have realised their 70-year-old dream of writing their own constitution by themselves," he said.
"The people of India should recognise when Nepalese people have exercised their conscience by writing the constitution," he said adding "We don't want war or conflict with anyone".
"There are media reports that India has been imposing economic blockade upon us and if it is true we are prepared to ride on bicycles rather than using motor-vehicles," he said.
Prachanda's remarks came in response to the statement issued by India's Ministry of External Affairs expressing concern over the incidents of violence in southern Nepal following the promulgation of the Constitution.
There were rumours about possible shortage of petroleum products which Nepal gets from the Indian Oil Corporation and long queues were seen in all major petrol pumps in Kathmandu.
"The issues regarding indigenous groups, ethnic community, Muslims and Madhesis is our internal matter and we are capable of settling these issues," Prachanda said.
Speaking at a programme here, Prachanda underlined the need for greater unity among the people of Nepal at this moment of crisis.