India is attempting to attract Tesla to build cars in its country, promising lower production costs than China.
"The government will make sure the production cost for Tesla will be the lowest when compared with the world, even China, when they start manufacturing their cars in India. We will assure that," Mr Gadkari said.
India's courting of the electric car maker comes as the country draws up plans for a scheme to incentivise manufacturers to produce battery-powered vehicles.
As a signatory to the Paris Accord climate agreement, India is committed to reducing its pollution output – an uphill battle, with smog know to affect its populous cities.
Gadkari said the government also wanted to discuss a potential ultra high-speed hyperloop between Delhi and Mumbai with Tesla.
"Development and environment will go hand in hand. We will take some time but we will soon reach the international standard norms."