"Homage to Gandhi & solidarity with the Palestinian people. EAM lays flowers at the bust of the Mahatma in Ramallah," external affairs ministry spokesman Vikas Swarup tweeted.
The bust of Gandhi was unveiled at the Garden of Nations in Ramallah in April 2014.
Earlier on Sunday, Sushma Swaraj met her Palestinian counterpart Riyad Maliki in Ramallah as she began her visit to Palestine and Israel.
Sushma Swaraj landed in Tel Aviv late on Saturday.
She is also scheduled to meet Palestine President Mahmoud Abbas.
From Palestine, the Indian minister will proceed to Israel to meet top Israeli leaders.