We've always had serious misgivings about selling armed UAVs, even to allied nations like France and Italy, India's important as a tool in our geopolitical shed, but an aircraft like the Avenger with a long-range and large payload is the kind of system the US prefers not to be proliferating.
If sold, I doubt the Avenger India would receive would have the option of being armed.
We're also very stingy with our sales of advanced ISR equipment, but would be more willing to stuff the internal bay with such then weapons. India would get to pick its pods, we've no desire to sell our top-end surveillance gear to anyone.
Realistically, the US would be more keen on selling India the MQ-4 as it's a long-range ISR platform tailor made for keeping an eye on Chinese movements, which is a concern of ours that India could help with.
India gets its UAV for maritime recon, one that synergizes with its P-8I, we get a share of the intelligence data.
If we're selling India a UAV for keeping tabs on Pakistan, the likelihood of it being a Reaper variant is greater (even an armed version would be in the works).
The US had an issue selling India ISR gear for its P-8Is and for its C-130s, so I'm not confident we'd offer them systems like Gorgon Stare either.
They'll be sourcing from a European or domestic supplier instead.
Avenger isn't DQ'd from the start, but it does run into issues with red-lines the US doesn't like to cross (that it's armed would be the biggest sticking point). Armed drones, even with India's admissions into the MTCR, aren't items the
US likes to proliferate. At present, the US has cleared India's procurement of Predator XP - an unarmed UAV.
And though it could be a foot-in-the-door approach to selling UAVs to India, it still shows the US isn't yet ready to offer India anything too qualitative.