Swaraj, who arrived here on a two-day visit to attend the 15th ministerial meeting of the Bay of Bengal Initiative for Multi-sectoral Technical and Economic Cooperation (BIMSTEC), met Deuba at his official residence in Baluwatar.
This was the first meeting between the two leaders since Deuba took over from Maoist leader Prachanda as Nepal's prime minister in June in a power-sharing deal.
Swaraj, who is one her sixth visit to Nepal, said the Indian government was looking forward to Deuba's five-day state visit to India, scheduled to take place from August 23.
"The two sides discussed ways to enhance cultural linkages and people-to-people contacts between our two countries," it said, adding they also discussed an expanded bilateral agenda reflecting the updated national priorities of Nepal.
Cooperation in hydro power sector also came up for discussion. Both sides agreed that there are immense possibilities for cooperation in the sectors of infrastructure, connectivity and energy, the statement added.
The member countries of BIMSTEC are India, Bangladesh, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal.
Earlier in the day, the BIMSTEC Secretary-level talks were held to discuss agenda for the ministerial meeting, which will take place tomorrow.
The meeting, which was inaugurated by Deuba today, will deliberate on 14 different themes like trade, investment, transport and communication, energy, tourism, agriculture, counter-terrorism, poverty alleviation, public health, environment and natural disasters and climate change.
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