66-year-old Gehlot, a Rajya Sabha member, is BJP's national general secretary.
His inclusion in the Union Cabinet is seen as giving representation to the under-privileged section of the society.
Gehlot has tested electoral waters earlier as he has been a member of 11th, 12th, 13th and 14th Lok Sabha from Shajapur constituency in the state.
He was elected to Rajya Sabha in May 2012 and is an old party loyalist.
He was also deputed as the central observer of the party for Gujarat and is considered close to Modi.