The Indian IT infrastructure market - which includes server, storage, and enterprise networking equipment - will grow 1% in 2016 to reach $1.9 billion in 2016, Gartner predicts.
"Indian enterprises will continue to focus on optimizing their infrastructure and operations budgets in 2016," said Naveen Mishra, research director at Gartner.
"Optimization is primarily driven with an objective to create next generation data center architecture that can support the ever increasing challenges of digital business. With the emergence of bimodal IT, there are a lot of investments made in Mode 1, and is an increasing focus on building Mode 2 infrastructure."
Mode 1 workloads are witnessing investments in areas such as cloud, software-defined storage, and network coupled with integrated systems.
The public cloud is increasingly becoming relevant for data center managers and IT leaders in India. Though it's in the early days, DevOps is another area which is gaining traction in India within IT operations teams.
Enterprise networking, on the other hand, is the biggest segment of the Indian IT infrastructure market with revenue expected to total $848 million in 2016.
Gartner said this is an area where enterprises are focusing heavily in terms of their optimization efforts and evaluating software driven networking, as this is becoming a barrier to a seamless digital experience.
"With a revenue projection of $253 million in 2016, storage investment will witness a decline from last year primarily due to improved price performance," said Mishra. "Enterprises are increasingly investing in software-defined storage, evaluating alternate, cheaper devices, such as flash storage, which is helping them to contain the ever increasing storage costs."