The FAA's decision to downgrade India was made at the same time the U.S. government is making a strong push to encourage the Indian government and aviation industry to buy planes and technology from U.S. companies. The U.S. Trade and Development Agency sponsored a two-day "U.S.-India Aviation Summit" in Washington last October at which government officials, including FAA Administrator Michael Huerta and Transportation Secretary Anthony Foxx, touted U.S. technology to several dozen Indian officials.
US aviation agency downgrades Indian safety rating
Oh and just for your information, Pakistan is Category 1