You made an asinine comment. The reality is that India put in protectionist rules in place to ensure their folks got jobs and didn't have to compete internationally. Apparently you think it is perfectly acceptable for US tax dollars to go to a project where their own citizens don't have a chance to get some of the work because the Indian government won't allow it.
The trade agreement specifies that contracts have to be competitive and India chose to ignore this rule. It isn't a really hard concept.