"Government has expressed concern over reported US monitoring of internet traffic from India.
"The violation of any of Indian law relating to privacy of information or ordinary Indian citizen by such programmes is unacceptable," Telecom Minister Ravi Shankar Prasad said in written reply to Rajya Sabha.
The Minister was replying to a question on government awareness about snooping by "US agencies through Google or such US based internet channels"
All the companies have denied the allegations.
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Prasad said that taking note of disclosure by foreign media reports in June 2013 about US agencies' extensive electronic surveillance programmes to collect internet and telephpny data, India government has expressed concerns over reported US monitoring of internet traffic from India.
"It would be a matter of concern for government if intrusive data capture has been deployed against Indian citizens or government infrastructure. Government has clearly conveyed these concerns to the US government," Prasad said.
"Government is promoting Indian players in the IT field to develop and offer internet services by having their servers located in India...Already Refiff and Indiatimes have set up servers and accessories in the country to provide e-mail and other services to Indian citizens," Prasad said.
In a separate reply to a question on cyber attacks on India, the Minister said that there has been increase in cyber security incidents.
"During the years 2011, 2012, 2013 and 2014 (till May), a total number of 21,699, 27,605, 28,481 and 9,174 Indian websites were hacked by various hacker groups spread worldwide," he said.