The source added that Rex Tillerson feels slighted that he's suppose to be the nation's top diplomat yet Jared Kushner and Ivanka Trump have "stepped all over him" for a long time.
One senior State Department official explained to CNN that anyone higher than the deputy assistant secretary won't be participating in the summit.
AP's Economic Development Board (EDB) chief executive J Krishna Kishore pursued the issue with the USA authorities on behalf of the State government, but to no avail, they said. The summit will focus on the theme of 'Women First, Prosperity for All, ' and will be the first GES in which over 52.5 percent of the participants are women.
The Andhra government, as part of its "brand building" efforts, had felt that a visit by the US President's daughter would bolster the southern State's image internationally.
Amitabh Kant, the CEO of NITI Aayog, on Monday, said that the eighth edition of the Global Entrepreneurship Summit (GES) would help create an ecosystem that would promote the growth of start-ups in the country.
This year's event, though, falls just as the White House has directed Tillerson to slash his agency's budget. Also, the Entrepreneurship Summit was an Obama-era creation that started in 2010, so some change in approach would have surely been expected.
The acting assistant secretary for the central Asia region, Alice Wells, was originally slated to be at the summit but has since been pulled off by Tillerson's team, according to a CNN source. In a way to snub the first daughter, he's refusing to send any senior officials from the State Department.
The news of Tillerson's decision to withhold high-level support for Ivanka arrives in the midst of increased tension between Tillerson and the White House.
A spokesperson for the State Department who provided a list of senior government officials attending did not include any senior State Department officials.
The delegates include about 400 each from India and the United States and the remaining from rest of the world.