An AMI study 2006-2007 on India Small Business Overview and Comprehensive Market Opportunity Assessment has stated that SMBs will spend up to $8 billion in 2007 to boost IT infrastructure.

AMI-Partners' survey reveals that SMBs experienced an overall increase of over 20% in 2006.

The rapid expansion of IP-enabled business process services has led to enterprises spending more on Internet products, though computing products still account for bulk of IT investments.

"Growing awareness of computing technology and the benefits of Internet access have resulted in greater IT adoption among India's SMBs," notes Neha Jalan, Kolkata-based analyst at AMI-Partners.

"About 15% of businesses said they will respond to increased competition by boosting their capital outlay and investing in new technology. SMBs in India are adopting increasingly sophisticated technology in an effort to compete effectively with larger conglomerates," explains Jalan.

According to AMI, SMBs in India will invest in PC products and solutions. Among PC-penetrated SMBs, over 40% claim that they considered buying additional hardware and upgrading existing PCs as an important strategic move.

The study also mentions that investments in security and storage solutions will see a significant growth in 2007 in India, as a majority of SMBs considered increased IT storage capacity and deployment of enhanced storage solutions as an important strategic priority.