The Indian Davis Cup team, whitewashed by formidable Spain in the World Group Play-off tie, was seeded second behind Kazakhstan in the Asia/Oceania Group 1.
Group I has five more teams that will strive to reach the World Group next season, including China, Chinese Taipei, Korea Republic, New Zealand and Uzbekistan.
India can a home tie only if it draws New Zealand. It will be an away tie with all other opponents in the Group.
India had defeated New Zealand 3-2 in an away tie in July 2015 to qualify for the World Group Play-offs.
Against all other teams, India played at home in its last tie.
The draw for the season 2017 will be made in London on Wednesday.