KenV, Mayhap, but if State point out that if they don't, the next Sqn will be either Russian or European A-400Ms, I thing they'll find them.
DoD and USAF don't give a wit if India starts buying Russian transports again, or switch to European transports. And USAF not wanting to give up their C-17s has nothing to do with parochialism. C-17s are the most heavily utilized aircraft in the USAF inventory and USAF intends to fly them till 2116 at least. Yes that's right, 100 years! They bought a few attrition spares but cannot afford to just give up three to India or anyone else. Boeing struggled to find buyers for the 10 white tails. India had multiple chances to lock in a buy of any or all of them, but as is their wont, they diddled. And now it's just too late.