It's not a political decision. It's current law. What Air India would have needed would have been a political decision, a waiver, to an understandable but unforeseen situation.
New Delhi would be fine asking for forgiveness if this were military plane. But Air India, a private company, has to deal with other private companies. Do you think Air India's banks want to bet their livelihoods on an ex post facto waiver? Even if (read: when) Air India is given a waiver, the American wire officer who processed their transactions after a known sanctions violation would be in personal jeopardy, legally, professionally and possibly criminally. Same for every engineer who provided support, every courier who knowingly transported parts.
> what has it to do with GE? The equipment belongs to Air India in India.
The engine on that 777 is made by GE. It has to comply with U.S. law. You don't want every part and service contract with GE and Boeing and who knows who else being held up while you get forgiveness.