Powell was responding to a question whether she has plans to meet Modi following British high commissioner James Bevan meeting him last month.
Britain last month had ended its decade-long boycott of Gujarat with Bevan meeting Modi to mark a "cordial beginning" to fresh ties, with the two discussing opportunities for greater economic cooperation.
The US had refused visa to Modi after the 2002 post-Godhra riots.
US assistant secretary of state for South and Central Asia Robert Blake last month had said Modi was free to apply for visa now and the system will take its course. The statement had come days within the UK ended its boycott of the state.