In continuation of a tradition that started in 1950, Nepal Army chief Gen Prabhu Ram Sharma was conferred with the honorary rank of 'General of the Indian Army' by President Ram Nath Kovind on Wednesday.
Gen Sharma is on a four-day visit to India to explore ways to expand bilateral defence cooperation.
"President Ram Nath Kovind conferred the honorary rank of general of the Indian Army on General Prabhu Ram Sharma, chief of the army staff, Nepali Army at a special investiture ceremony held at Rashtrapati Bhavan on Wednesday," the Rashtrapati Bhavan tweeted.
Nepal conferred the honorary rank of 'General of Nepal Army' to Indian Army chief Gen MM Naravane during his visit to Kathmandu in November last year.
Gen Sharma also called on chief of defence staff Gen Bipin Rawat on Wednesday and discussed ways to strengthen the bilateral defence cooperation, officials said.
On Tuesday, Gen Naravane held extensive talks with his Nepalese counterpart focusing on ways to various aspects of bilateral military cooperation.
Nepal is important for India in the context of its overall strategic interests in the region, and leaders of the two countries have often noted the age-old 'roti beti' relationship.
Land-locked Nepal relies heavily on India for the transportation of goods and services.
Nepal's access to the sea is through India, and it imports a predominant proportion of its requirements from and through India.