Reuters reported that senators John Cornyn and Mark Warner, who jointly chair the so-called India caucus, had written to Prime Minister Narendra Modi asking him to adopt a "light touch" that would allow the data to flow freely across borders.
In August, it was reported that global payments firms MasterCard, Visa and American Express were lobbying the Indian Government to avoid having to store customer data locally by 15 October.
The same month, it was reported that the panel working on India's cloud computing policy wanted data to be stored locally, meaning that costs for companies like Amazon and Microsoft would go up.
In their letter, Cornyn and Warner said: "We see this (data localisation) as a fundamental issue to the further development of digital trade and one that is crucial to our economic partnership."
India is formulating an overall data protection law that wants all critical personal data stored within the country. New Delhi is also developing policies on ecommerce and cloud computing.
The letter also raised concerns around these proposed ecommerce and cloud computing laws.
American lobby groups have also taken up cudgels on behalf of Google, Facebook and Amazon, which are also concerned about the data localisation laws, as it would mean higher operating costs.