Vijyes
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C17 has wider fuselage because it is bigger than IL76. And as you mentioned,the only advantage is that MBT can be transported due to wider fuselage. But it has no bigger advantage.The C-17 has definite performance advantage over the IL-76 in all parameters. And its wider fuselage and taller allows for carriage of a much larger range of cargoes compared to the IL-76 too.
IIRC the IAF pitched for C-17 by publicising its ability to carry fully loaded MBT into Leh. A tactically irrelevant ability as you pointed out in your earlier post, but a "shiny" Gucci point that can be used to fool feeble minded politicians and babus.
I'm entirely sure some other political factors were involved as you guess...no Indian defence procurement is entirely clean after all...but what cannot be denied is that at the end of the day, the forces received a much needed and capable platform...albeit the IAF messed up by not following through to complete the full purchase.
Moreover, the huge weight of the aircraft makes it expensive to operate. It is a fuel guzzler and consumes 5 times as much fuel as Su30 for every trip even with 30-40 ton payload.
India couldn't buy 16-17 C17s as USA itself found out that C17 is tactically wasteful and stopped its production. USA even had another Lockheed starlifter which was even bigger but that too stopped production.
So, definitely,India going for C17 is due to USA pressure to reduce trade surplus and hence requirement is being artificially invented