"As far as their Ambassador or any other diplomats are concerned, they are free in this country to move and get information that helps them to understand India, dynamics of Indian politics better, as we do in their country," Khurshid said.
Powell met the BJP's prime ministerial candidate at Gandhinagar, ending a nine-year US boycott of the BJP leader.
"Did we celebrate that he did not get visa? Are we going to be depressed that he got the visa?" Khurshid said.
The External Affairs Minister also underscored it was for the US to decide whether or not to change their stand on Modi.
It was for the first time in 13 years that a US Ambassador-level officer travelled to Gandhinagar to meet Modi.
The US has insisted that its policy on granting visa to Modi has not changed.